China says it wants to eliminate bitcoin mining – Reuters
What happened: China’s National Development and Reform Commission (NRDC) added crypto mining, including bitcoin mining, to a draft list of industrial activities it is seeking to restrict or phase out for noncompliance with relevant laws and regulations. The draft, however, did not specify a time frame or plan for eliminating mining activities in the country. The NRDC said on Monday it was seeking public opinions on the revised list and the public has until May 7 to comment on the draft.
Why it’s important: China’s move to ban crypto mining is no surprise. Authorities started clamping down on crypto activities in the country from late 2017 when it announced an outright ban on exchange services, which drove a slew of crypto wallets and trading platforms abroad. In early 2018, regulators decided to lower the incentives for crypto mining without banning the practice entirely. Now with the government seeking to eliminate mining activities, major mining firms will very likely move their operations overseas. China’s mining scene has a significant influence over cryptocurrencies like Bitcoin. According to Cointelegraph, as much as 70% of Bitcoin mining took place in China in 2018.