China Officially Abandoned The Fight Against Crypto Mining

The National Development and Reform Commission (NDRC), an economic planning agency under the State Council of China, presented the final version of the “Industrial Structure Adjustment Guidance Catalog”. According to the document, which will enter into force on January 1, 2020, the PRC refuses to prosecute miners and combat crypto mining.

China’s National Development and Reform Commission has removed #cryptocurrrency mining from the list of industries they want to eliminate. Bullish for #Bitcoin. pic.twitter.com/FHpzB5g6CD

— Samson Mow (@Excellion) November 6, 2019

According to the participants of the crypto community, the news will positively affect the position of the cryptocurrency.

The famous cryptographer Nick Szabo, whom many consider the creator of BTC, drew attention to the fact that the decision of the China authorities is not the equivalent of the full legalization of cryptocurrency mining in the country. The popular crypto blogger WhalePanda, on the contrary, believes that the decree legitimized the activities of miners in China.

What Has Changed?

In the final version of the document, the agency crossed out Bitcoin mining and other operations related to virtual currency mining from the category of industries that should be abolished in China. The latest version of the document was introduced in 2011. The new option has become its replacement.

Recall that the previous edition of the list of industries subject to promotion, liquidation or restrictions was published by the NDRC team this spring. In it, department experts decided that mining bitcoin and other cryptocurrencies should be prohibited in the country. However, the deadline for the execution of the decision was not indicated. A negative attitude to mining by the Chinese authorities could affect the position of the cryptocurrency since most of the bitcoin computing power is located in China.

According to commentators on the network, a change in attitude towards mining by the Chinese regulator is associated with the choice of the PRC strategy for engaging blockchain at the state level. It is noteworthy that technology has become the basis for the identification of smart cities in the country. Also, China recently created a regulatory authority to certify fintech products and passed a cryptography law.

Recall that at the moment the country is preparing to issue its own cryptocurrency. Work in the indicated direction has a positive effect on the behavior of shares of Chinese fintech companies.

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