Inspired by its new fascination with blockchain, China now seems to have changed its mind about cryptocurrency mining. The latest version of a national macroeconomic plan indicates that the government in Beijing has given up intentions to suppress the bitcoin mining industry, in which Chinese companies have become global leaders.
Mining Not to Be ‘Eliminated’
The Industrial Structure Adjustment Guidance Catalog, issued by China’s National Development and Reform Commission (NDRC), has lost a reference to crypto mining activities. This is actually good news as a draft released earlier this year had mining among industries that Beijing wanted local administrations to get rid of. “That doesn’t mean mining is legal, but it is less illegal,” a Chinese miner contacted by news.Bitcoin.com remarked confirming the news.
The final version of the document, which was published this week, will enter into force in January 2020. The catalog lists industries that regional authorities are advised to encourage, restrict or eliminate. The initial policy proposal prepared by the central government agency in April reportedly mentioned virtual currency mining in the ‘eliminate’ category.
NDRC, formerly the State Development Planning Commission, is responsible for macroeconomic management. It operates under the State Council, which is China’s main administrative authority controlling the country’s economy. The commission formulates policies for economic and social development and guides restructuring efforts. With around two dozen departments and agencies under its umbrella, it effectively functions as a mini version of the Chinese government.
China’s Dominance in Bitcoin Minting
Cheap electrical energy and suitable climate have turned China into a hotspot for the business of minting digital coins.