China will no longer restrain the bitcoin mining. The change was published in a new edition of the China Industrial Structure Adjustment Guidance Catalog. The document will enter into force from the beginning of 2020.
According to Blockstream CSO, Samson Mow, mining is no longer on the list of problematic sectors, as previously considered by Beijing. “China’s National Development and Reform Commission has removed the cryptocurrency mining from the list of industries they want to eliminate. Bitcoin scored a point”, Mow said.
The new decree is a kind of turnaround, since earlier this year, a version of the document pointed out that Bitcoin mining was targeted by the Chinese government. Thus, this is rare positive news for the cryptocurrency sector in China, a country where these assets are virtually prohibited from being traded out of the central bank’s control.
Bitcoin Mining is consolidated industry in China
With the recent endorsement about the blockchain technology, there has been a considerable increase in the Bitcoin value against the dollar. However, even with the recent announcement, there have not been many changes in the cryptocurrency market.
It can be said that mining has long been consolidated as a profitable industry in China. With cheap electricity, it makes most of the agents involved in this activity reside in the country. Proof of this is that Canaan Creative, one of Bitcoin’s largest mining equipment manufacturers, will undergo an initial public offering of US$ 400 million, or IPO, later this month.
