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China tags crypto mining industry as negative

crypto mining

TL;DR Breakdown

• China has stated that it will add crypto mining to the list of industries banned from investment.
• China has once again declared war on the crypto world.

This week the Chinese government has declared that crypto mining was added to the negative list of 2021. This is a list where companies or industries appear where investments are disabled or restricted.

Although the number of sectors has been reduced, China has published a document adding the crypto mining sector this Friday. The crypto market has been evolving, and many countries see cryptocurrencies as a risk to the economy.

In China’s negative lists are the sectors and industries where the Chinese and foreigners cannot invest.

China has banned trading and crypto mining

crypto mining

Cryptocurrencies have become a great opportunity to invest, and today, you can buy or sell goods and services easily and quickly. But for many countries, digital currencies volatility can be a big problem for the economy because investors can lose their funds.

The China regulators have declared that crypto mining and cryptocurrencies trading are prohibited this year. China’s central bank has published that it will clean up and purify illicit or illegal digital currency activities.

China has long tried to regulate cryptocurrencies because they see them as risks and dangers to people’s assets. Last September, China’s central bank announced that transactions with cryptocurrencies, including Bitcoin, were illegal throughout the country.

China is one of the largest crypto markets, and with this announcement, the Bitcoin price dropped almost US $2,000. For the Asian country, investments in digital currencies are volatile and speculative, and it also lends itself to illegal cases such as terrorism, money laundering, etc.

Financial regulators of securities and currencies teamed up with the central bank to regulate and prohibit all cryptocurrency operations for the first time. Although it is not the first time China has proposed to regulate digital currencies, in 2013, Chinese banks banned their use.

Exchange platforms have had to stop their operations in China

These bans and regulations have led crypto exchange platforms to stop trading with users in China. The measure of adding crypto mining to this list affects all Chinese investors because they can no longer carry out operations in the crypto market.

All sectors or industries not on the negative 2021 list remain open to investment for Chinese and foreigners and do not require approvals.

The National Development and Reform Commission has said that the 2021 negative list of industries banned or restricted has been reduced. There are 117 industries or sectors, while in 2020, there were 123. Despite this reduction, now crypto mining appears on the list, and no Chinese or foreign investor can access this market.

Carisbel Guaramato

Carisbel Guaramato

An avid content creator for over 4 years, Carisbel spends her time on blogs and technology news. She honed her skills as a social communicator and now finds crypto and blockchain news events worldwide for transmission through Cryptopolitan's neutral and incisive way.

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