China Plans To Ban Bitcoin Mining?


"I believe China simply wants to "reboot" the crypto industry into one that they have oversight on, the same approach they took with the Internet", she added.

The public have been given until May 7 to comment on the draft directive. If Chinese mining farms control the block production process to validate Bitcoin transactions, they effectively control the network.

The announcement has not had any noticeable effect on the price of Bitcoin, which is now trading at its highest level since November 2018.

China, one of the world's most prominent blockchain and cryptocurrency forces, wants to put an end to "wasteful" Bitcoin BTC mining.

Among of the major effect on the environment is that bitcoin mining consumes too much electricity and poses heavy risks to ozone layer that could in turn result to global warming.

China is the world's largest market for computer hardware created to mine bitcoin and other cryptocurrencies, even though such activities previously fell under a regulatory grey area.

China has had a tumultuous past when it comes to cryptocurrency and blockchain.

In China, the main source of electricity is coal-fired power plants, whose pollution is particularly severe in the northeast in winter.

China has signaled its intent to ban cryptocurrency mining, dealing a fresh blow to an industry buffeted by tumbling virtual currency prices, stiff competition and waning investor interest. Market leader Bitmain Technologies - which in March allowed its application for a Hong Kong initial public offering to lapse - has established mining operations in the United States and Canada. The ban would also include bitcoin. The intertwined relationships between mining companies and local governments make it hard if not impossible to enforce effectively the ban, according to Zhong.

In late 2017, authorities started clamping down on crypto activities in the country and announced an outright ban on exchange services.

The prospectus forecasts that sales in China would rise to 35.6 billion yuan by 2020.