China Moots Bitcoin Ban

China Moots Bitcoin Ban
China's move against Bitcoin mining operations may be motivated by ecological or political reasons.

(CCM) — Chinese authorities are considering banning cryptocurrency mining operations because the vast amounts of power consumed by cryptocurrency mining "farms" causes pollution and is a waste of resources, according to a BBC report.

China's economic planning agency said that "virtual currency mining activities [including] the production process of Bitcoin," may be closed down in the future, and has invited comments from the public until May 7. A date for any ban that is introduced has not been announced.

China's Xinhua news agency has reported on a study suggesting that emissions due to cryptocurrency mining could cause global warming, and also said that some mining computers had been confiscated by Chinese authorities because they threatened to interrupt energy supplies from local grids, the BBC added.

In 2017 Chinese regulators closed down Bitcoin exchanges and banned initial coin offerings (ICOs) as part of a crackdown against cryptocurrencies, so it is not clear if the possible ban on mining is really a political decision rather than an ecological one.

The announcement has not had any noticeable effect on the price of Bitcoin, which is currently trading at its highest level since November 2018.

Image: © Julia Tsokur -