Any news coming out of China tends to trigger some cryptocurrency market momentum. In recent years, most of the news has been negative, which won’t surprise too many people. In the most recent development, it would appear China’s state planner wants to put an official end to Bitcoin mining in the country. It is one of several dozen activities to be “blacklisted’ in the country.
China Goes After Bitcoin Again
Ever since Bitcoin trading in China took a big hit due to new regulatory measures, the country has continued its effort to thwart any cryptocurrency activity. While those efforts have seen varying degrees of success, any hint at banning Bitcoin-related activity usually drives the world’s leading cryptocurrency’s price down as a result. This most recent development may trigger a very similar effect, although it remains to be seen how things will play out in this regard.
China’s state planner has submitted a new draft proposal which will legally put an end to Bitcoin mining. Not entirely surprising, as China has begun weeding out most of the Bitcoin mining operations in the country over the past two years. This new proposal, however, seems to indicate Bitcoin mining does “not adhere to relevant laws and regulation, or wastes resources”. It seems the latter angle will be the main reason for this approach, albeit no one ever knows for sure how government officials think when it comes to cryptocurrency activity.
It is also worth noting this new proposal does not just revolve around Bitcoin mining either. A revised list or industries to be restricted or eliminated has been produced. It now encompasses over 450 activities, which is a vast increase compared to its previous iteration published back in 2011. It is only normal some changes are made in that regard, and the growing dislike toward Bitcoin has been well-documented as well.
What is rather interesting is how there is no official date as to when these changes could go into effect. The Chinese public has the option to comment on this new proposal from now until May 7 of 2019. It will be interesting to see how things will evolve in that regard, as the public may take somewhat of a stance against some of these future restrictions. Even so, after the comment period comes to an end, there is still no official indication as to when the proposed changes would go in effect or how they will be enforced exactly.
The big question is whether this news will trigger a wave of bearish Bitcoin price pressure again. The world’s leading cryptocurrency recently broke the $5,000 resistance numerous times in a successful manner, although there may be a sharp retrace following this news. However, China hasn’t played much of a role of importance in the Bitcoin industry for many years now. Most of the news coming out of that country will not affect the overall market trend for an extended period of time.
Another potential consequence to take into account is how most of the Bitcoin mining hardware is produced and operated in China. As such, this potential upcoming ban could have some big consequences in that regard, although it is still too early to draw any real conclusions in this regard. It is evident China wants to distance itself from cryptocurrency in every way possible, and this new proposal is a clear example of making that vision come true in the near future.