Cryptocurrency technology trends continue to reshape economic models around the world. Until recently, China was against the blockchain cryptocurrency revolution. New documents reveal that the Chinese republic now joins the league of nations that embraces the bitcoin culture. This reform allows free movement of Bitcoin-related investments, an activity China laws previously prohibited; if the central bank had no control over the process.
According to the reports, China’s NDRC (National Development and Reform Commission) has lifted the ban that outlawed cryptocurrency mining. It was one of the industries that the government firmly opposed and worked assiduously to undermine. The newly revised guidance catalog for industrial structure adjustment, which features the amendment will take effect early next year. Since the Chinese leader, Xi Jinping, endorsed blockchain cryptocurrency technology, the BTC/USD pair has forecasted dramatic climbs on the exchange. While his diplomatic stance on the subject inspires hope, local media cautions not to misconstrue the gesture as a show of support.
Amid this recent revelation, Canaan Creative, a powerhouse Chinese bitcoin miner, decided to move forward with IPO plans. The CoinTelegraph reports that it will propose an opening IPO of $400 million this November. Mining is a top-performing sector of the Chinese market, with many principal investors residing there. Bitcoin markets in China are still calm despite receiving promising news about change.
Today, official reports reveal that China has eliminated crypto-mining as an undesirable banned industry. According to an earlier publication by CoinTelegraph, consideration to unblock crypto-mining first went under advisement last April. The revised draft argues a series of points, which highlights activities; that violates state mandates and laws as it pertains to ecology and also poses some safety risks.
The two-year-long ban on ICOs (initial coin offerings), an action enforced by the PBoC (People’s Bank of China), dates back to September 2017. Ever since this decision, China has continued to mobilize efforts to downsize the crypto-mining market. Reports also stipulated that China hosted over two-thirds of the world’s mining titans. With an abundance of resources, hardware, and affordable renewable energy, China has become a sought-after mining destination.
Not long after this became public knowledge, the central bank petitioned for a soft exit of crypto miners last January (2018). There are still no official sanctions that outrightly prohibits crypto-mining activities in China to date. The trend continues to build momentum amid the escalating US-China trade frictions and mounting domestic pressure.
