Mining

China considers phasing out cryptocurrency mining, following similar proposal in 2011

April 9, 2019, 4:46AM EDT

China’s National Development and Reform Commission (NDRC) has drafted a list of industries it wants to phase out, and cryptocurrency mining is among them, Reuters writes. Currently, NDRC wants public opinions regarding which industries should be encouraged, restricted or eliminated, and the public can comment on the draft until May 8.

According to NDRC, cryptocurrency mining should be eliminated since it does not adhere to national laws and regulations. It also characterized it as unsafe and wasting resources. However, the same recommendation appeared in a proposal published in 2011 and hasn't been implemented yet. If such a proposal were to be implemented, it would potentially take several years, meaning it would not have any immediate impact on Chinese mining operations.

According to a state-owned news outlet Securities Times, the draft list “distinctly reflects the attitude of the country’s industrial policy” towards cryptocurrencies. 

China is the world’s largest market for mining chips; the biggest miner manufacturers—Bitmain and Canaan— originate from there. However, the country has forced many mining companies to relocate.