China's National Development and Reform Commission has just revealed it plans to ban all crypto mining activities in the country.
The commission has published a list of industries that the state should support, restrict or ban. Crypto mining has been included in the document as an "undesirable industry."
If the draft is eventually approved, the mining farms that operate in the country will be closed and the sale of mining devices will become illegal.
The project will be discussed until May 7.
China restricted the use of digital coins back in 2017: the authorities prohibited initial coin offerings (ICOs) as well as the participation of national crypto exchanges in the country's economy. At the same time, China is the country with the largest number of mining farms in its territory due to the low cost of electricity.
Why it is important
- China seems to be and endless source of crypto and blockchain news. While the country has adopted a very conservative attitude towards cryptocurrencies, it supports and fosters the development of their underlying technology, blockchain.
- If the ban is implemented, mining companies will be forced to cease their activities or to find other countries to operate. However, it will be difficult for them to find another country where electricity is as cheap as in China.
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