On Monday, April 8, China’s National Development and Reform Commission (NDRC) unveiled a draft proposal containing some economic activities that the government should ban citizens from engaging in.
Among the listed economic activities though, the government agency mentioned cryptocurrency mining as a practice that the country should eliminate. The agency argued that the process, which ultimately supports most cryptocurrencies including Bitcoin is harmful to the environment, and doesn’t contribute positively to the economy.
That assertion probably would not have been a cause for concern if not for the fact that China boasts the highest number of cryptocurrency miners, as well as the most number of mining chip makers.
However, further evidence suggests that the possibility of China placing a ban on cryptocurrency mining is not a challenge to the community, at least not yet.
For one thing, the newly proposed amendments could only find implementation tens of years down the road even though the announcement notes that the public has until May 7 to make an input on the changes.
Dovey Wan, a Chinese citizen, explained in a tweet the reason for the stance by highlighting that some items the NDRC outlined for elimination before 2006 are still happily hanging around even in the latest 2019 release.
Additionally, some items mentioned in the NDRC’s 2011 guidelines still reappeared in the latest release and appeared to be “just proposals” as Dovey noted.
Moving away from that, the fact the new regulations could be created to make cryptocurrency mining less harmful to the environment leaves China with a second option. That is, to develop rules to govern cryptocurrency mining, like U.S county Missoula did in the past week, or go ahead with the ban.
Whatever decision that country reaches, though, it would likely take a couple of years before they are finalized. Therefore the industry would be better off focusing its strength on how to completely exit the bear market, instead of worrying about a likely change that lies years ahead!