- The Chinese government has introduced a new bill that does not ban mining.
- China thus remains an attractive mining location for investors and could be strongly expanded in the near future.
For a long time China was regarded as a hard advocate of Bitcoin and cryptocurrencies. In 2018, they were banned nationwide from trading and mining Bitcoin and other Altcoins. Since China’s announcement that it would soon bring its own digital currency onto the market, the digital yuan, President Xi’s position has changed dramatically. The Bitcoin mining ban also seems to have been lifted.
Bitcoin mining will not be banned in China
According to the latest report of the National Development and Reform Commission, the section banning Bitcoin mining has been banned from the bill. Dovey Van, a Chinese crypto-insider, posted a section of the draft on Twitter, stating that Bitcoin mining should not be banned.
As we have already reported, the new “Crypto Law” is due to come into force on January 1, 2020, which will regulate all legal issues relating to cryptocurrencies, blockchain and fintech. In this draft the paragraph for the prohibition of mining can no longer be found, so that the Chinese government will no longer prohibit mining. This would send a very positive signal to Bitcoin and the market in general.
6 months ago CT was screaming abt “China banning bitcoin mining” when a fuzzy drafted “guideline” was published by China state planning dept
The official version is out: cryptocurrency mining is removed from the “eliminating category”
— Dovey "Rug the fiat" Wan (@DoveyWan) November 6, 2019
This step is part of a 180-degree turn of the Chinese government. The president praised the blockchain technology in the highest terms and emphasized the numerous opportunities that the country will receive and benefit from in the long term, both nationally and internationally.
Further signs for a future positive attitude towards Bitcoin and cryptocurrencies lie in the development of a wallet provider. The oldest Bitcoin wallet provider from China has secretly and quietly advanced the further development of the existing infrastructure, regardless of the development that had prevailed until recently.
Centralisation of Hash-Power in China
Much of the hash power in the Bitcoin network comes from China, so the community is divided. Without the miners from China, the Bitcoin network would lose a lot of power, making it more vulnerable to hacker attacks and therefore less secure.
The other part of the community points out that further centralization of mining could take place in China, making the Bitcoin network too dependent on China. For the time being, however, the news is of a positive nature, as the adaptation of Bitcoin continues to be driven forward.
Bitcoin’s price has been showing a sideways trend (+ 0.26%) to a price of 9,354.43 USD within the last 24 hours.