Will China Ban Crypto Mining?
On April 9, Reuters announced that a Chinese government agency is thinking about the end of crypto mining in the nation. Given that China has been facilitating most of mining pools on its soil, the worldwide crypto industry may be ready to endure a huge shot. However the plan isn't written in stone now, and part of network has expelled it as easygoing FUD.
China's central state planning agency, the National Development and Reform Commission (NDRC), has uncovered it may control crypto mining in the nation inside and out. Prominently, the news was first broken by state-claimed paper the Securities Times, who detailed that the NDRC's draft list “distinctly reflects the attitude of the country’s industrial policy” toward the cryptocurrency industry.
As local newspaper South China Morning Post reported, the new plan brings uncertainty not only to local miners, but to the makers of cryptocurrency mining rigs as well. That would include the aforementioned Bitmain, which, in 2017 controlled an estimated three-quarters of the global market, as well as Canaan Creative, another large Chinese mining hardware manufacturer. Both companies had filed for initial public offerings (IPOs) in Hong Kong, but were met with skepticism by the local watchdog.
Additionally, according to its IPO filing, by mid-2018, Bitmain operated as many as 11 mining farms in China, and hence would be largely affected by the NDRC’s reported plans. The company has declined to comment on the issue, as per various media reports.