China’s war against cryptocurrencies may soon extend to a broader ban on cryptocurrency mining. Reuters Reports indicate that the country has added cryptocurrency mining to its draft “negative list” that limits or completely bans investments in a specific industry, both by Chinese and foreigners. Prospective investors will need to obtain approvals, and such approvals are unlikely given China’s anti-crypto stance.
Bitcoin.com He notes that the China Development and Reform Commission is requesting public comment on the list until October 14. However, it is doubtful that public input will change the approach to cryptocurrency mining. China has declared cryptocurrency illegal, claiming that the digital currency has sparked a rise in money laundering and other financial crimes. Despite this, the country has been testing its cryptocurrency, and some suspect that the country just wants a more stable currency that it can control directly.
This move could make cryptocurrency impractical in China. Just don’t be sad about cryptocurrencies as a whole. Bitcoin’s price has surged more than 30 percent since China’s crackdown in September – the ban may have given the cryptocurrency a second wind as it was otherwise on the cusp of stabilization. It may just be a question of whether or not the official Chinese currency is distorting the market.
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