Chinese Authorities Want To Ban Cryptocurrency Mining: Details

China has always been known for its large crypto mining capability, however, the situation may change completely if the Chinese authorities ban mining and mining pools. Let us look at the details.

Cryptocurrency mining is a process of verifying and introducing the new coins to the existing circulating supply. The coins are often referred to the digital assets, like world-famous Bitcoin and Ethereum. After the exchange of the new coins, the user/miner gets a reward. For producing big amounts of these coins, one should have powerful computers and electricity supply. And electricity is the thing that the Chinese authorities are being concerned about.

The National Development and Reform Commission (NDRC) presented some amendments to the guidance for adjustments to the nation’s industrial structure. The categories inside included encouraged, restricted and eliminated sectors, and cryptocurrency mining is among them, in particular, it is going to be eliminated soon.

According to rules enacted by China’s cabinet in 2005, eliminated Industries are those which waste energy or pollute the environment. Investments and loans are forbidden in these industries.

China is home to some crypto mining farms, like Bitmain which is considered to be the world’s largest crypto mining company. The main locations of mining farms are coal-rich Xinjiang and Inner Mongolia regions as the price of electricity there is very low. Some miners reallocated to the Yunnan and Sichuan provinces to exert electricity from water.

If the new rules come into power, Chinese miners are to give mining, at least legally, which will result at the end of the country’s dominance in the energy-hungry, yet a lucrative industry.

We remind you:

Bitmain Corporation Closes its Office in Norway

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