The NDRC or National Development and Reform Commission of China, which is the state planning agency that has the responsibility for formulating macroeconomic policies, revealed that it thinks about eliminating crypto mining in the country. The central government agency also labeled Bitcoin mining as an “unwanted” industry in a draft proposal.
Revising the Catalogue for Guiding Industry Restructuring
The NDRC published the draft proposal this Monday, which for revising the already existing Catalogue for Guiding Industry Restructuring. The catalogue actually lists out industry activities which the agency suggested to restrict, encourage, as well as discontinue.
The NDRC now included cryptocurrency mining as part of the draft for a revised list of some industrial activities which the agency has the intention to curtail. The list, which is actually long with more than 450 points, identifies the actions that the state deems to violate the relevant regulations and laws, pose a safety hazard, or are even not ecological.
It is actually part of the broader Catalogue for Guiding Industry Restructuring of NDRC, which was issued since 2005, and it even determines which of the industries will be fostered, eliminated, or restricted merely in the country.
The to-be revised catalogue, while still has to be approved by the public before it takes into effect, categorizes Bitcoin mining as the undesirable industrial sector, and says that it has to be discounted in the future development of the country. It believes that this should be done together with some other industries which have low and obsolete productivity or even result in massive pollution.
NDRC’s draft list reflects the attitude of the country’s industrial policy
The NDRC was formally launched in 1998, and now represents one of the 26 cabinet-level departments, which together form the State Council of the central government of China, has the primary role to focus on studying, and penning economic reform policies and strategies.
The NDRC has published its first Catalogue for Guiding Industry
Restructuring in 2005, to inform the local governments on sector types are encouraged, and what isn’t, for future developments. Later on, the catalogue was revised and updated in 2011, and then in 2013 and 2016, undergoing another revision.
The draft list of NDRC distinctly reflects the attitude of the industrial policy of the country, towards the crypto industry. The public is going to have the ability to comment on the draft until the 7th of May.
Since the historic ban of the People’s Bank of China on ICOs during September of 2017, the Chinese state made a few faltering moves to try to cut the mining titans of the country down to size.
Will the revised guide have an effect on BTC mining in China?
Because of the abundance of the country of cheap energy, as well as hardware, several reports from before indicated that more than two-thirds of the global mining pools were actually based in this country. By January of the last year, a leaked memo advocated for exiting Bitcoin miners from China.
But, we should still wait to see if the revised guide even includes such categorization of Bitcoin mining in the final form. We should also expect to see if it is going to have an effect on Bitcoin mining in China since the catalogue serves as the general direction for developments in the future.
Nevertheless, mining is still not prohibited in the country, with some industry giants like Beijing-born Bitmain operating in the country, as well as overseas. Right now, China is the home to some of the largest crypto mining equipment makers and mining farm operations in the world.
This also continued regardless of the adverse effect of the crypto bear market, increasing trading frictions with the U.S., and even domestic pressure. For example, later in March, Bitmain announced that it plans to set up 200,000 units of mining equipment in China to benefit from the low-cost hydroelectric power of the country.