After remaining the epicentre of global bitcoin mining, China has finally proposed to ban cryptocurrency mining. The Chinese government has drafted plans to stop cryptocurrency mining amid as part of industrial activities it wants to end, news agency Reuters reported.
World s second largest economy is known as the largest market for computer hardware designed to mine cryptocurrencies. On Monday, China s central state planner, the National Development and Reform Commission, included cryptocurrency mining in a list of 450 wasteful and hazardous activities slated for elimination.
The list includes over 450 activities that the agency wants to phase out as they fail to follow regulations and are unsafe, wasted resources or polluted the environment.
“Bitcoin mining wastes a lot of electricity,” Reuters reported, citing an unidentified Chinese bitcoin trader.
The popular cryptocurrency bitcoin surged nearly 20 per cent since hitting a record-high in 2017-end and broke $5,000 for the first time since mid-November.
On Tuesday, Bitcoin fell by 1.4 per cent, while Ethereum and Ripple’s XRP were also down by the same amount. Since 2017, cryptocurrency has been under intense scrutiny in China with regulators began to ban initial coin offerings and closing down local cryptocurrency trading exchanges.
In the recent times, nations with cheap electricity have come out as major hosts of cryptocurrency mining.
A ban on cryptocurrency in China would reduce supply of cheap electricity for the industry and raise the average cost to mine bitcoin, Mati Greenspan, an analyst with eToro in Israel, told Reuters.