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China considers cryptocurrency mining to be a bad business

The Chinese government said this week that crypto mining had been put on the bad list until 2021. This is a list of businesses or industries where investing is prohibited or limited.

Even though the number of industries has been decreased, China released a document on Friday that added the crypto mining industry. The cryptocurrency industry has evolved, and many governments consider cryptocurrencies to be a threat to their economies.

The sectors and industries on China’s negative lists are those in which both Chinese and international investors are prohibited from investing.

China has outlawed cryptocurrency trade and mining

Cryptocurrencies have grown in popularity as a wonderful way to invest, and you can now purchase and trade products and services conveniently and fast. However, digital currency volatility may be a major economic concern for many nations since investors risk losing their money.

Crypto mining and cryptocurrency trading have been deemed illegal in China this year by officials. The People’s Bank of China has said that it will clean up and purge illegitimate or unlawful digital currency activity.

Because cryptocurrencies are seen as hazards and threats to people’s investments, China has attempted to regulate them for a long time. As a result, China’s central bank stated in September that all cryptocurrency transactions, including Bitcoin, were banned throughout the country.

China is one of the major crypto marketplaces, and the price of Bitcoin plummeted over $2,000 due to this statement. Investments in digital currencies are fickle and speculative for the Asian country, and they also lend themselves to criminal instances such as terrorism, money laundering, and so on.

For the first time, securities and currency authorities joined forces with the central bank to regulate and restrict all cryptocurrency transactions. Even though this is not the first time China has considered regulating digital currencies, Chinese banks prohibited their usage in 2013.

In China, exchange platforms have had to halt their activities

As a result of the prohibitions and regulations, crypto exchange sites have stopped dealing with Chinese users. Therefore, the addition of crypto mining to this list impacts all Chinese investors since they are no longer able to conduct business in the cryptocurrency market.

All sectors and industries on the negative 2021 list are still accessible to Chinese and international investors and don’t require permission.

According to the National Development and Reform Commission, the negative list of sectors prohibited or limited in 2021 has been decreased. There are 117 industries or sectors now, compared to 123 in 2020. Despite this reduction, crypto mining has now been added to the list of prohibited activities, and neither Chinese nor international investors can participate in this market.

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