Regulators in China are determined to shut down cryptocurrency miners that have managed to stay operational after sweeping bans.
Despite China’s efforts to end cryptocurrency mining in the country, some of these miners chose to continue operating illegally. To combat this, China has also added crypto mining to its ‘Negative List’, which includes sectors where investing is prohibited and summarizes which sectors are “off-limits” for both foreign and domestic investors, according to Reuters.
Cryptocurrency mining has been added to the draft 2021 “Negative List for Market Access,” according to an announcement by state planner China’s National Development and Reform Commission on Friday. The list was published jointly by the Commission and the Ministry of Commerce. The State Council issued the following statement:
“The Negative List for market access summarizes offshore sectors, areas and businesses for investors. Industries, areas and businesses not on the list are open to investment by all market players.”
Cryptocurrency mining now makes up one of 117 industries that are restricted or banned by the Negative List. Any sector not included in the list refers to sectors that are open to investment without prior approval. The document states that China believes investments in these blacklisted sectors have the potential to adversely affect national security, public interests and the environment.
China Continues Not To Give Up In Its Anti-Cryptocurrency Campaign
The announcement of the crypto mining blacklisting came just after the People’s Bank of China completely banned foreign crypto platforms from providing services to local investors. In addition, the monitoring of crypto-related transactions has been enhanced. This move resulted in the shutdown of several China-based cryptocurrency companies, including BitZ. The popular exchange, which has been operating since 2017, has announced that they will have to cease operations due to recent changes in “policy and regulatory requirements”. China has also restricted access to many popular websites, including CoinGecko, CoinMarketCap, and TradingView.
What we have mentioned above is China’s latest moves, which is trying to eliminate cryptocurrency mining due to environmental concerns. Although the reasons for China to set such a policy are not 100% clear, it is claimed that the mining ban is mainly caused by environmental problems. China is known to promise to be carbon neutral by 2060, and it is thought that the country’s huge crypto mining industry could prevent this goal from being achieved. The country has been testing its own cryptocurrency for a while, and some suspect the country wants a more stable currency they can directly control. By the way, for those who are wondering; President Joe Biden has also set 2050 as the deadline for the United States to achieve carbon neutrality.