South China Morning Post reports that the National Development and Reform Commission (NDRC) has revealed a draft list of industrial activities the government is interested in restricting or outright banning, which include cryptocurrency mining. Currently, NDRC wants general public opinions regarding which industries ought to be encouraged, restricted or eliminated, as well as the public can comment on the set up until May 8.
Crypto mining was top of the Commission's list of practices that should be eliminated immediately.
China signaled its intent to ban cryptocurrency mining, dealing a fresh blow to an industry struggling with tumbling virtual currency prices, competition and waning investor interest. The ban would also include bitcoin. China is now the dominant force in crypto mining hardware production with companies such as Bitmain controlling a large percentage of the industry.
China has been home to the biggest crypto mining companies in the world, with about 70% of the mining activity happening in the country. The NDRC believes that Bitcoin mining belongs to the list that now contains 450 items.
China is the world's largest market for computer hardware created to mine bitcoin and other cryptocurrencies, even though such activities previously fell under a regulatory grey area.
China's Xinhua news agency has reported on a study suggesting that emissions due to cryptocurrency mining could cause global warming, and also said that some mining computers had been confiscated by Chinese authorities because they threatened to interrupt energy supplies from local grids, the BBC added. According to Reuters' sources, the Chinese government has been investigating these two companies' business models.