China Is Planning to Ban Bitcoin Mining

The government of the People's Republic of China is reportedly considering bringing an end to all crypto mining in the country.

On Tuesday (April 9), Reuters reported that China's National Development and Reform Commission (NDRC) had announced on Monday that it was "seeking public opinions on a revised list of industries it wants to encourage, restrict or eliminate"; this list, which is known as "Guiding Catalogue for the Adjustment of Industrial Structure", has been issued since 2005.

The Guiding Catalogue is "a document supplementary" to the "Interim Regulation on Promoting the Adjustment of Industrial Structure". When it was first issued, it covered "more than 20 industries that include agriculture, water conservancy, coal, power, transportation, information industry, iron and steel, nonferrous metals, petrochemical industry, building materials, machinery, light and textile industries, service industry, environmental and ecological protection, conservation and comprehensive use of resources, and etc," and in total, there were "539 articles in the encouraged category, 190 in the restricted category and 399 in the to-be-eliminated category."

The Reuters report says that the draft version of the Guiding Catalogue has added cryptocurrency mining to the "over 450 activities the NDRC said should be phased out as they did not adhere to relevant laws and regulations, were unsafe, wasted resources or polluted the environment." Apparently, this document "did not stipulate a target date or plan for how to eliminate bitcoin mining, meaning that such activities should be phased out immediately." Until May 7th, it is possible for the public to submit their comments on the proposed changes to the list.

The report also quotes the state-owned Securities Times as saying on Tuesday that this draft list “distinctly reflects the attitude of the country’s industrial policy” toward the crypto industry.

Although the People’s Bank of China (PBoC) banned initial coin offerings (ICOs) in September 2017, until now, crypto mining has been legal, though discouraged due to the huge amount of energy it uses. For example, on 4 January 2018, South China Morning Post (SCMP) reported that, according to its unnamed sources, China aimed to "drive cryptocurrency miners out of business by limiting power consumption" because "Chinese officials are concerned that bitcoin miners are taking advantage of low power prices in some areas and affecting normal electricity use in some cases." More interesting, this article also mentioned that the curbs " will also involve other regulators" such as the NDRC. 

Of course, this move by the Chinese government should come as no surprise to crypto mining companies that still have mining facilities in China. For example, Bloomberg reported earlier today that Bitmain Technologies has already "established mining operations in the U.S. and Canada."

Twitter account cnLedger, which reports on the crypto/blockchain related news in China, said on Monday that over-the-counter (OTC) desks, which have been the "almost only way" to buy cryptocurrency in China via fiat currency since the PBoC's ICO ban, are seeing strong buys for tether (USDT), with Chinese traders/investors first buying USDT and then converting it to other cryptocurrencies such as Bitcoin at spot exchanges of their choice:

 

Featured Image Credit: Photo by "enriquelopezgarre" via Pixabay.com

Crypto Market Update: Focus on BTC, ETH, BCH, BNB, XMR, and DASH

Siamak Masnavi

This article provides a quick overview of how the crypto markets have been doing—with the focus on Bitcoin (BTC), Ether (ETH), Bitcoin Cash (BCH), Binance Coin (BNB), Monero (XMR), and Dash (DASH)—over the past 24-hour period.

Overall, September 17th is proving to be a bit of a mixed day, with 12 of the top 20 cryptocurrencies (by market cap) in the red at press time (around 06:25 UTC).

BTC-USD

BTC-USD 24 Hour Chart - 17 Sep 2019.png

The bad news is that are still waiting for the launch of Bakkt's physically-delivered daily and monthly Bitcoin futures contracts. So, Bitcoin is still trading mostly sideways, hovering around the $10,300 mark. The good news is that the launch is expected to take place in less than one week (i.e. on September 23), as was confirmed by this tweet that Bakkt sent out on September 16:

ETH-USD

ETH-USD 24 Hour Chart - 17 Sep 2019.png

The Ether (ETH) price continues its upward movement toward the $200 mark, up another 2.24% in the past 24-hour period (making it up 4.32% in the past 7-day period). What may have helped the Bitcoin price yesterday (September 16) is the announcement by crypto payment processor BitPay that in the near future it will be possible for its customers to accept Ether payments for purchases of goods and services. Also, the BitPay wallet will support Ether.

Ethereum co-founder Vitalik Buterin had this to say about the news:

"It is exciting to see BitPay leading the way in integrating Ethereum into global payment systems. This truly opens up a new world of possibilities for the Ethereum ecosystem, and together we can continue to be a leading innovator for real world use cases for cryptocurrencies.

BCH-USD

BCH-USD 24 Hour Chart - 17 Sep 2019.png

On Monday (September 16), Bitcoin.com announced that it had entered into a strategic partnership with Taiwanese smartphone manufacturer HTC, as a result of which the Bitcoin.com wallet will come preinstalled on HTC's current and upcoming blockchain phones (Exodus 1 and Exodus 1s):

BNB-USD

BNB-USD 24 Hour Chart - 17 Sep 2019.png

Although BNB is currently in the red, this may change during the next several hours once all of the six mini announcements that Binance plans to make today have come out:

The first of the six announcements that Binance CEO Changpeng Zhao (aka "CZ") referred to is the addition of support for Cosmos (ATOM) to Binance's Margin Trading platform:

XMD-USD

XMR-USD 24 Hour Chart - 17 Sep 2019.png

OKEx Korea announced on Monday (September 16) that it intends to delist all five privacy coins it is currently supporting, i.e. XMR, DASH, ZEC, ZEN, and SBTC, due to concerns that these cryptocurrencies do not allow it to implement FATF's so-called "travel rule". 10 October 2019 is the date on which transaction (i.e. trading) support ends.

DASH-USD

DASH-USD 24 Hour Chart - 17 Sep 2019.png

Since OKEx Korea's delisting announcement mentioned DASH, you would expect it to be down today, just like XMR. However, it is not, and that is very likely due to the fact that today (September 17) is the day that trading in DASH is expected to start on Coinbase Pro on/after 09:00 PST (16:00 UTC) provided that there is sufficient liquidity.

Featured Image Court: Photo via Pixabay.com