China proposes eliminating cryptocurrency mining due to “Energy Waste”
The National Commission of Development and Reform of China included on Monday April 8 to the mining of cryptocurrencies in the list of industries that seeks to eliminate, arguing an “energy waste” associated with this activity.
The list is part of a guide that classifies industries in the categories of “promotion”, in reference to the activities that are sought to grow in the country; “Restriction”, those whose activity they want to reduce; and “elimination”, which are the industries that are proposed to be disposed of completely. In this last category, the criptominería enters.
This document represents a new version of the same guide, issued in 2011. This version again included elements of the document of eight years ago that still exist in Chinese industry, since in fact it is a non-binding proposal.
The proposal will be subject to comments from interested parties until May 7, and the potential ban could enter into force once it is formally launched, although the authorities did not give an estimated date for it.
In the case of Bitcoin, currently more than 55% of the computing power of the network is managed by companies established in China. Among them, five of the six largest pools in the world. In any case, this does not imply that the mining machines are in your territory. That is to say, a possible prohibition would not reduce Bitcoin’s processing power in a significant or prolonged manner.
China has been gradually restricting the activities associated with cryptocurrencies and blockchain or distributed accounting technology. They have already banned exchange houses. Recently it was announced that 197 blockchain companies (data exchange, social networks or supply chains) passed the filter of regulations, although in exchange they will have to share the data of their customers.
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