China plans to add crypto mining to the negative list for market access. This will make it almost impossible for investors to take part in the mining industry. At the same time, it will make it easier for China to keep suppressing crypto activities. They have banned crypto so many times that now it seems no matter what happens, we are going to hear that China banned it again. So, it is best things get clear once and for all.
Why is crypto mining added to the negative list of market access?
Recently, cryptocurrency mining was added to the draft of the negative list for market access. And then, it was released by the Commission and the ministry of commerce. This negative list makes it illegal for investors to put money in specific industries or sectors without prior approval. You could say that these industries are off-limits. As of 2020, the Chinese list has 123 industries which show that the government has been doing quite a lot of restricting in the country. And now, in 2021, even after crypto was added to the draft, the list was reduced to 117.
Any sector or industry that is not on the list can be invested in without any form of approval required by the government. At present, the list is open for public opinions and comments for a week till 14th October. After the same, it is probable that the draft will be implemented, and crypto mining will be finalized on the negative list.
China’s effect on crypto
China has long been against crypto mining, and this has directly affected the price of cryptocurrency. The ban in China on cryptocurrency mining resulted in a dip in the hash rate of Bitcoin, which was one of the reasons for its insane price correction, along with Tesla removing BTC as a payment option. Presently, as the price continues to recover, it is happening simultaneously as the hash rate recovers as well. This is because BTC miners are slowly shifting to other countries.
What are your thoughts as crypto mining was added to the negative list draft? And do you think that this was the right step taken by the Chinese government? Let us know in the comments below. Also, if you found our content informative, do like and share it with your friends.
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