The Chinese government has added mining in the list of "undesirable" industries10.04.2019
The China National Development and Reform Commission (NDRC) called Bitcoin mining an “undesirable” activity and recommended that local authorities ban the work of this industry in the country.
On Monday, the agency published a proposal to revise the existing Catalog for the management of industrial restructuring, which lists the sectorial activities that are proposed to encourage, restrict or prohibit.
At the moment, the Catalog classifies Bitcoin mining as an undesirable industry and recommends banning such operations along with other industries that either have low productivity or lead to severe environmental pollution.
The Agency published the first Catalog for the Management of Industrial Restructuring in 2005 with the goal of informing local authorities about which industries should be encouraged and which should be prohibited for the future development of the country. The catalog was revised in 2011, 2013 and 2016, and work is also underway to update it.
Members of the public can share their views on the proposed amendments until May 7, after which the final version of the Catalog will be published. It is not yet clear whether the revised guideline will have any impact on the cryptocurrency mining industry in China, since the Catalog itself serves only to indicate the general direction of the country's future development.
Currently, the world's largest manufacturers of equipment for the extraction of cryptocurrency, as well as mining farms are still working in China. Recently it became known that the company Bitmain plans to expand its computing power, installing in the region about 200,000 pieces of equipment.
In addition, in February, the Chinese mining company Ebang, which controls 9.2% of the global market for cryptocurrency equipment, said it plans to produce at least 400,000 new devices this year.