Chinese Agency Reinstates Goal to Phase Out Crypto Mining Industry
The move comes almost two years after the agency quietly removed crypto mining from the list of industries to be eliminated.
Oct 8, 2021 at 2:26 p.m. UTC:format(webp)/cloudfront-us-east-1.images.arcpublishing.com/coindesk/U3ISMFFPMJDDTGGL2VDOEA7LWE.jpg)
Crypto mining machines. (lmstockwork/Shutterstock)
The highest economic planning agency under the State Council of China has added crypto mining back to the list of industries it aims to eliminate.
The National Development and Reform Commission (NDRC) said crypto mining is an industry that uses outdated production processes and equipment, according to the latest draft of the “Catalog for Guiding Industry Restructuring.”
The move comes almost two years after the agency quietly scrapped a plan to get rid of mining. Bitcoin and other virtual currency mining were included in an April 2019 draft list of industries to be phased out but they weren’t present in the final version published the following November.
The reappearance of crypto mining on the list is aligned with the State Council’s appeal to crack down on crypto trading and mining in May, and a more enforceable and extensive ban from the People’s Bank of China on trading and mining in September. Just two weeks ago, Chinese authorities ordered a fresh crackdown on crypto mining and outlawed virtually all crypto trading activities
The NDRC started publishing the industry reform catalog in 2005 and grouping industries into three categories that will be encouraged, restricted or eliminated to steer the country’s economy.
See also: China Crypto Bans: A Complete History
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David Pan was a news reporter at CoinDesk with a focus on China.
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