China Wants to Eliminate Bitcoin Mining

Translator

Tempo.co

Editor

Laila Afifa

9 April 2019 14:14 WIB

TEMPO.COShanghai - China's state planner wants to ban bitcoin mining, according to a draft list of industrial activities the agency is seeking to stop in a sign of growing government pressure on the cryptocurrency sector.

China is the world's largest market for computer hardware designed to mine bitcoin and other cryptocurrencies, even though such activities previously fell under a regulatory grey area.

The National Development and Reform Commission (NDRC) said on Monday it was seeking public opinions on a revised list of industries it wants to encourage, restrict or eliminate. The list was first published in 2011.

The draft for a revised list added cryptocurrency mining, including that of bitcoin, to over 450 activities the NDRC said should be phased out as they did not adhere to relevant laws and regulations, were unsafe, wasted resources or polluted the environment.

It did not stipulate a target date or plan for how to eliminate bitcoin mining, meaning that such activities should be phased out immediately, the document said. The public has until May 7 to comment on the draft.

State-owned newspaper Securities Times said on Tuesday that the draft list "distinctly reflects the attitude of the country's industrial policy" towards the cryptocurrency industry.

Last week, the price of bitcoin soared nearly 20 percent in its best day since the height of the 2017 bubble, and breaking $5,000 for the first time since mid-November, though analysts and traders admitted that they were puzzled by the surge.

On Tuesday, bitcoin was trading at $5,190.

The cryptocurrency sector has been under heavy scrutiny in China since 2017, when regulators started to ban initial coin offerings and shut local cryptocurrency trading exchanges.

China also began to limit cryptocurrency mining, forcing many firms - among them some of the world's largest - to find bases elsewhere.

Chinese companies are also among the biggest manufacturers of bitcoin mining gear, and last year three filed for initial public offerings in Hong Kong, looking to raise billions of dollars.

However, the two largest, Bitmain Technologies, the world's largest manufacturer of bitcoin mining gear, and Canaan Inc, have since let their applications lapse.

People familiar with the deals said that Hong Kong regulators had many questions about the companies' business models and prospects.

According to Canaan’s IPO prospectus filed last year, sales of blockchain hardware primarily for cryptocurrency mining in China were worth 8.7 billion yuan ($1.30 billion) in 2017, 45 percent of global sales by value.

The prospectus forecasts that sales in China would rise to 35.6 billion yuan by 2020.

REUTERS

Read: Bitcoin Plummets Following ICO Ban in China

Jakarta Revokes Business Permits of 12 Holywings Outlets

21 jam lalu

Jakarta Revokes Business Permits of 12 Holywings Outlets

The Jakarta Provincial Government has officially revoked the business permits of 12 Holywings outlets in the capital.


Bank Indonesia Predicts 4.5 to 5.3% Economic Growth in 2022

4 hari lalu

Bank Indonesia Predicts 4.5 to 5.3% Economic Growth in 2022

Bank Indonesia (BI) projects the country's economic growth to range between 4.5 and 5.3 percent in 2022.


Consuming Local Products Strengthens the Economy, Says Sri Mulyani

5 hari lalu

Consuming Local Products Strengthens the Economy, Says Sri Mulyani

Finance Minister Sri Mulyani Indrawati said small and medium industries have become one of Indonesia's economic backbone.


Indonesia to Export Rice to China, Saudi Arabia

5 hari lalu

Indonesia to Export Rice to China, Saudi Arabia

Agriculture Minister Syahrul Yasin Limpo says Indonesia would soon export rice to China, Brunei Darussalam, and Saudi Arabia.


Heralding a Unified Approach for ASEAN Data-Driven Economy

8 hari lalu

Heralding a Unified Approach for ASEAN Data-Driven Economy

The ASEAN Economic Community celebrates another significant achievement in its digital transformation journey.


Shopee Indonesia Boss Comments on Layoffs In Overseas Branches;

11 hari lalu

Shopee Indonesia Boss Comments on Layoffs In Overseas Branches;

Shopee Indonesia's executive director spoke about the company's operations in other countries and its effect on the Indonesian branch.


Economy Expected to Grow over 2 Percent as Bali Tourism Improves

16 hari lalu

Economy Expected to Grow over 2 Percent as Bali Tourism Improves

Bank Indonesia expects that Bali's economy in Q2 2022 could grow by over two percent as tourism activity is improving.


Annual Jakarta Fair Hoped to Accelerate Economic Revival

18 hari lalu

Annual Jakarta Fair Hoped to Accelerate Economic Revival

The annual Jakarta Fair exhibition, after a two-year hiatus due to Covid-19 health precautions, is held again at Central Jakarta's JIExpo Kemayoran.


Garuda Indonesia Files Settlement Proposal to Creditors

18 hari lalu

Garuda Indonesia Files Settlement Proposal to Creditors

Garuda Indonesia announces it has filed a settlement proposal in its debt postponement petition (PKPU).


China's EV Producer BYD to Supply Batteries for Tesla

19 hari lalu

China's EV Producer BYD to Supply Batteries for Tesla

Chinese electric carmaker BYD is reportedly preparing to supply batteries to Tesla soon, a senior executive from the company said.