China has filed the cryptocurrency mining industry in its drafted ‘negative list’ for market access. The list outlines several industries that investors both local and foreign are not allowed to participate in.
When a specific business, sector or industry is on the negative list, these are either completely banned or have limitations to those who practice it. Certain permits or approvals need to be secured for items on the negative list to be legally practised.
According to the official statement of the China State Council, they clarified, ‘The negative list for market access outlines sectors, fields and businesses off-limits for investors. Industries, fields and businesses not on the list are open for investment to all market players’.
As of now, the proposal is under observation, with the Development and Reform Commission taking public opinions and other factors into account. A comment period from October 8 to 14, 2021 is open to the public before a decision is made.
If the draft is approved, crypto investors and operators in the country will be forced to withdraw from all related activity.
In 2020, there were a total of 123 industries included in the list, according to an article by Bitcoin.com. This number has slightly decreased in 2021 with 117 listed industries. Some of the other industries listed include the maintenance or destruction of state secrets and the operation of security training businesses.
China’s latest move on their agenda against cryptocurrencies comes several months after regulators decided to ban crypto trading and mining ultimately. The process was officially dubbed as ‘illegal’ earlier this year and has since been applied to all businesses and individual investors in the country.
Due to this year’s events, crypto investors in China along with businesses and exchanges are forced to withdraw from operating in the country. The recent crackdown and the latest news of adding crypto mining to the negative list prove that China will not be welcoming crypto investments or projects in the near future.
Stay up to date with the latest cryptocurrency news and cryptocurrency updates right here at Cryptoshimbun!