Potential Scenarios in China’s Bitcoin Mining Ban
China, the world’s biggest market for computer hardware produced to mine Bitcoin and other major cryptocurrencies, recently banned crypto mining activities, with the aim of combating the increasing pressure on the government from the crypto sector. The move - China’s Bitcoin (BTC) and cryptocurrency mining ban – poses some potential scenarios.
China Bans Bitcoin & Cryptocurrency Mining
The People’s Republic of China, the world’s largest market for computer hardware created to mine Bitcoin (BTC), has totally banned crypto mining in the country in order to stop the growing pressure on government from the cryptocurrency industry. No time limit for the ban has been set.
China Supports Blockchain Tech but not Cryptocurrency
China’s attitude on distributed ledger technology (DLT) is in agreement with global policy trends. The country embraces blockchain technology but not cryptocurrency, according to the BITBLOCK monthly research report on “Chinese Blockchain Policy.”
China Denotes New Regulations for Blockchain Firms, Comes into Force on Feb 15
China has launched new regulations designed to promote the ‘healthy development’ of distributed ledger technology (DLT). The CAC denoted new regulations on Thursday, January 10, 2018. Nevertheless, the new law also gives the right to the Cyberspace Administration of China (CAC) to superintend node operators and to request private information (info).
China to Establish Blockchain National Standards
China has started to set up a national standard for blockchain in order to raise the building of a blockchain standard system from the top-level, hoping to complete the process by the end of 2019, according to Chinese state media reports. Chinese authorities are focusing on implementing top-level, or top-down standards to compete favourably in the world market.
China’s LocalBitcoins Platform Set an Unprecedented Trading Volume
Bitcoin and cryptocurrency exchanges have always been irregular in China, especially when it comes to LocalBitcoin. Every now and then the volume changes. Last week the nation set a new all-time trading volume record on the LocalBitcoins platform . This shows that the demand for Bitcoin ceases to slow down in China. Furthermore, this shows that issuing a permanent ban on Bitcoin will never be in China’s interest.