China has reaffirmed its stance on cryptocurrencies, despite the fact that crypto mining is prohibited in the nation, some have opted to operate illegally.
China has added cryptocurrency mining to its ‘bad list’ of sectors. This latest initiative implies that investors may no longer participate in the crypto mining business.
According to a Reuters storey published on Friday, October 8, 2021, this news was contained in a document issued by two National Authorities.
The Negative List of Market Access
The statement was made on Friday by China’s state planner, the National Development and Reform Commission (NDRC), and the Ministry of Commerce. It includes a draught of the Negative List For Market Access for 2021.
The State Council explained:
“The negative list for market access outlines sectors, fields, and businesses off-limits for investors. Industries, fields, and businesses not on the list are open for investment to all market players.”
According to the paper, investments in these banned industries might have a severe impact on China’s national security, public interest, and environment. If the proposal is approved, it will make investments in the listed industries illegal. Industries that are not on the list are available to all investors without additional permission.
One of the 117 industries restricted or forbidden under the bad list is cryptocurrency mining. According to the National Development and Reform Commission, the total has decreased from 123 industries on the 2020 list.
According to local media, the NDRC is presently seeking public input on the negative draught list. Submissions can be made by the general public from October 8 to October 14, 2021. Many people are eager to learn if their input will have any influence on the final list.
China’s cryptocurrency crackdown
The Chinese government formally prohibited cryptocurrency trading in 2019, while it remained online via international exchanges. This year, though, there has been a big crackdown.
China had one of the largest cryptocurrency marketplaces in the world. With the crackdown, investors and exchanges began to withdraw.
The Chinese crackdown has had an impact on the mining industry. Because of its comparatively low power prices and inexpensive computer gear, the country was one of the world’s top mining hubs.
In September 2019, China accounted for 75% of the world’s Bitcoin energy use. By April 2021, that figure had dropped to 46%.
In May, Chinese state institutions warned purchasers that they would have no protection if they continued to sell Bitcoin and other currencies online, as government authorities pledged to put further pressure on the business.
It instructed banks and payment providers to stop supporting transactions in June. It also placed restrictions on mining digital currency.
The People’s Bank of China and other government authorities declared all cryptocurrency transactions unlawful last month. The country’s central bank has pledged to eliminate “illegal” cryptocurrency operations. Subsequently, major exchanges began to break relations with their Chinese users.
Following China’s crypto ban, the values of Bitcoin and other currencies plummeted dramatically. It has, however, recovered quickly. At the time of writing, Bitcoin is worth more than $55,000.
