According to a report from the Chinese government, there is actually a plan to erase crypto mining in the country as an industry. In our bitcoin news today we will read more about the report issued by the National Development and Reform Commission (NDRC).
Though the report is still in the development stage, it is still horrifying to think that if it comes in force, the bitcoin rally will be stopped immediately. Bitcoin increased by 27 percent in the past two weeks and hit a 2019 high after a long time. It is now hovering above the $5,200 price point. The proposed mining ban in China could have a tremendous impact on the value of the cryptocurrency and its market cap.
The NDRC report further lists about 400 activities that the country should enact limit or put up a ban completely. More specifically, it underlines the industrial activities that have a negative impact on the Chinese environment.
The public will be able to comment on the report until the 7th of May. At that time, the report will likely be finalized by that time and will be put into force.
National Development and Reform Commission is a government entity that derives from the State Council and is a part of the Central People’s government. The proposed mining ban by the commission could have a massive negative effect on the price of the number one cryptocurrency.
China has a very important role as the host of the largest bitcoin mining pools on the planet including F2Pool, Antpool, and BTC.com. In the past seven days, all of the mining pools reported more than 50 percent of the total BTC mining hash rate. Chinese mining companies were responsible for more than 70 percent of the BTC hash rate during the BTC all-time high. If the pools were stopped then, the BTC network would have lost a huge part of its hash power which could have slowed down the transaction time.
If China continues to throw punches like these to the crypto industry, it could kill the industry in the country.
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