Although cryptocurrency mining is illegal in China, some have decided to operate illegally. To this end, China has included crypto mining on the “negative list” of industries. This latest effort means that investors can no longer invest in the cryptocurrency sector. A document published by two national authorities produced these reports under article Reuters on Friday, October 8, 2021.
Negative list
China’s state planner, the National Development and Reform Commission (NDRC) and the Ministry of Commerce released this on Friday. notification. It included proposing a negative list for market access until 2021. The negative list includes sectors and industries that are banned for local and foreign investors in China.
According to the document, investments in these blacklisted sectors could potentially negatively affect national security, the public interest and the environment in China. If the proposal passes, prohibit investment in those sectors. Unlisted industries are open to investment by all without further approval.
Cryptocurrency mining is one of 117 industries that are restricted or banned in the negative list. The National Commission for Development and Reform stated that the total number is less than 123 sectors on the 2020 list.
China and cryptocurrencies
China officially banned the cryptocurrency trade in 2019, although it continued online through foreign exchange. This year, however, there was a significant intervention.
China was one of the world’s largest crypto markets. Investors and exchanges began to move with hard interventions. The Chinese intervention also affected the mining industry. The country was one of the world’s best mining centers for relatively low electricity costs and cheaper computer hardware. In September 2019, China accounted for 75% of world energy consumption on BTC. By April 2021, it had dropped to 46%.
In May, a Chinese state institution warned buyers that they would have no protection against continuing to trade in BTC and other currencies because government officials promised increase pressure on industry. In June, it called on banks and payment platforms to stop facilitating transactions. It has also issued bans on the extraction of digital names.
Last month, the People’s Bank of China and some other agencies ban all crypto transactions. The country’s central bank promises to clean up “illegal” activities from cryptocurrencies. Large exchanges subsequently began to sever relationships with their Chinese users.
As a result of the Chinese ban on cryptocurrencies, the prices of BTC and other currencies have fallen sharply. Nevertheless, they recovered quickly. At the time of writing, BTC trades for more than $ 57,000.
