China To Reconsider Bitcoin Mining Stance

China, one of the biggest manufacturers of bitcoin mining gear, took action against eliminating the mining of the cryptocurrency, the state planner has indicated.

The National Development and Reform Commission (NDRC) in April sought public opinion on a reviewed list of industries it aimed to encourage, restrict or eliminate. Bitcoin mining was listed among the activities as at the time.

Meanwhile, the final list published by the state planner on Wednesday did not include bitcoin mining. Its exclusion was reported by industry website CoinDesk.

The cryptocurrency trading is still formally banned in China; the Standing Committee of the 13th National People’s Congress in China passed a new “crypto law” on Oct. 26 that will take effect on Jan. 1, 2020. The new legislation stipulates new standards for the application of cryptography and the management of passwords in the country and implicitly relates to cryptocurrency regulations.

However, the NDRC’s reasons were still unclear not to have mention bitcoin in the list. The NDRC did not immediately respond to a faxed request for comment.

China is the world’s largest market for computer hardware designed to mine bitcoin and other cryptocurrencies, but such activities have fallen in a regulatory decrepit area.

While China’s pursuit in developing its own digital currency has in recent years moved to tightly regulate the wider sector.

In 2017, it started to ban initial coin offerings and shut cryptocurrency trading exchanges and it also began to limit cryptocurrency mining, forcing many firms – among them some of the world’s largest – to find bases elsewhere.

Nearly half of bitcoin mining pools – groups of miners who team up for economies of scale – are in the Asia-Pacific, a Cambridge University study confirmed last year.

Chinese companies are also among the biggest manufacturers of bitcoin mining gear.

Last month, Canaan Creative, one of China’s biggest bitcoin mining hardware makers, filed to publicly list on the Nasdaq to raise $400 million, its third attempt to do so after previous failed tries in mainland China and Hong Kong.