China has included the cryptocurrency mining business to a draft list of industries in which investments are restricted or prohibited, Reuters has learned, citing a document released by the state planner. The negative list consists of sectors and industries that are blacklisted for participation not only by Chinese investors, but also by foreign ones.
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The current draft lists 117 industries. China believes that investing in blacklisted industries not only threatens the country’s national security, but also harms public interest and the environment.
The move comes a few weeks after the People's Bank of China banned foreign platforms from offering their services to local investors and strengthened monitoring of operations. As a result, financial institutions, payment companies and IT companies are prohibited from conducting transactions in cryptocurrencies.
The Central Bank has explained all services that allow exchanging traditional currencies for digital currencies or cryptos with each other are considered illegal. Among other things, this applies to OTC crypto exchange services provided by, for instance, Huobi, OKEx and Binance.
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