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China Makes First Steps to Legalize Cryptocurrency Mining
Will We See Further Crypto Friendly Regulations in China?
China and its relationship with Bitcoin and cryptocurrencies has been a shaky one, but it seems to be improving.
For many years cryptocurrency exchanges and mining were discouraged by the Chinese government. Despite this, the majority of global cryptocurrency mining remained in China. ICOs were banned in China towards the end of 2017 after A rough estimate of $400 Million USD were invested from China.
After years of confusing guidelines, it seems that the Chinese Government has started embracing blockchain technology. Additionally they have unveiled plans for the DCEP a digital version of the Chinese Yuan and earlier today a revision to the their stance on mining.
China to Embrace Cryptocurrency Mining?
Earlier today the Chinese government made a revision to the law regarding crypto mining. In the official China Guiding Catalogue of 2019 Industrial Structure changed its stance on the mining of virtual currencies. Previously it included a clause stating 'Virtual Currency Mining" as an industry that needs to be eliminated.
Miners Raise Your Hands！🙌— Crypto Even (@Crypto_Even) November 6, 2019
First step of LEGALIZING Chinese mining has been
On Nov. 6th, The official China Guiding Catalogue of 2019 industrial structure adjustment removes the "virtual currency mining" which used to be defined as "industry that needs to be eliminated" pic.twitter.com/qB5pWhdo5a
Consequences of China & Mining
This is a positive development for cryptocurrencies, Bitcoin by extension and cryptocurrency mining as a whole. Despite this the Chinese Government could possibly attempt to regulate cryptocurrency mining in China in the future.
Seeing the winds of change blowing in China, we could assume that they might re-think their position on cryptocurrency trading in the future. The only catch is that it could take a while.