China Removes Bitcoin Mining from “Eliminated” Industry
China’s authority has just removed bitcoin mining from the list of industries to be eliminated.
The National Development and Reform Commission (NDRC), a top-level economic planning agency under China’s State Council, has published a finalized new “Industrial Structural Adjustment Guidance Catalogue” on Wednesday that will take effect from Jan 1, 2020.
In the final version, the authority has removed bitcoin mining or other virtual currency mining activities from the initially proposed category of industries that should be eliminated. Description related to virtual currency or bitcoin mining cannot be found in the finalized catalog.
Six months ago in this April, the agency released a draft proposal where bitcoin mining was included in the list of unwanted industries. The drafted proposal cast a dark shadow of uncertainty over the industry, as many believed it would eventually lead to the elimination of the industry within the country.
According to public data, more than half of bitcoin’s global hash power comes from China thanks to its abundant and cheap hydropower available in southwestern China such as Sichuan, Yunnan and Guizhou; in addition, many of the world’s largest crypto mining equipment manufacturers, including Bitmain, Canaan and Ebang, are based in China.
The finalized decision comes on the heels of the laud from country’s president Xi Jinping in the blockchain sector. It ensures miners within the country who used to be operating under regulatory pressures and marks a positive development for the crypto mining industry in general.
However, there are also concerns that the development will lead to more miners setting up operations in China, which will increase the centralization of crypto mining.