The National Development and Reform Commission, the state planner of China, is in the hunt for public opinions whether BTC mining should be, without more ado, banned. The development is first reported by Reuters, citing the Commission.
It is to be noted that BTC mining has been incorporated in a draft list of industrial activities the agency is seeking to discontinue, as they did not stick to appropriate regulations and laws. The report further said that the aforementioned industrial activities wasted resources, were unsafe, or polluted the environment. Moreover, the public can comment on the draft until May 7.
Interestingly, Chinese miners are the main players in the BTC mining industry. For illustration, at the time of writing, 2 largest mining pools – AntPool and BTC.com (both owned by Chinese mining hardware giant Bitmain) – hold almost thirty-two percent of the BTC network hash rate. Essentially, hashrate measures how much computing power is required to maintain the network.
Markedly, if the new rules are enacted and Chinese miners will allegedly be forced to move to foreign countries, Bitcoin mining will no longer be dominated by China but become more decentralized. This statement was made by an analyst with Beijing-based cryptocurrency research firm TokenInsight, Michael Zhong and quoted first by South China Morning Post.
Notably, the abrupt move by the Commission indicates mounting government pressure on the crypto sector.
It is to be noted that articles from prominent state-run media outlets, a year ago, signaled that additional crackdowns could be launched to force out residual crypto and digital asset trading and mining activities from the country.
Nevertheless, until now, miners have shown an astonishing spirit. Additionally, the upcoming rain season in China should once again bring low electricity prices invigorating the cryptocurrency mining industry.
However, many of those mining companies were looking to transfer to more approving locations overseas such as Canada, Iceland, and the US.
In addition, there are several concerns that China holds more influence over BTC than many are ready to acknowledge.