Chinese Bitcoin Miners Get Reprieve from CCP
China’s National Development and Reform Commission (NDRC) has removed crypto mining activities as an unwanted industry from its Industrial Structure Adjustment Guidance Catalog.
China has long been a mining leader in the crypto industry. As a world leader in computer hardware generally, the country was in a unique position to take lead the way when it came to mining bitcoin and other cryptocurrencies. As in most hardware-intensive industries, the lion’s share of cryptocurrency mining hardware comes from China.
Nearly half of bitcoin mining pools, which are comprised of miners who team up for economies of scale, are based in the Asia-Pacific region, according to a Cambridge University study.
Canaan Creative, one of China’s largest bitcoin mining hardware makers, filed to publicly list on the Nasdaq to raise $400 million.
“I will open more mines,” Yu Wei, owner of four cryptocurrency mines, told the New York Times.
In the past, Chinese officials have been worried about the electricity use tied to mining, which uses many computers to break codes. After the industry appeared on a list in April threatening a possible ban, it sent a chill over the Chinese mining industry.
China has warmed to blockchain, with the CCP identifying it as a way to increase its sphere of influence globally. While China is developing its own digital currency, it has moved towards regulating the overall cryptocurrency industry.