China Will Keep up the Pressure on Cryptocurrency Mining: National Development and Reform Commission

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One of China’s top central government authorities has flagged the continuation of efforts to suppress cryptocurrency mining activities by domestic firms.

The National Development and Reform Commission (NDRC) recently issued the 2021 edition of the “Market Entry Negative List” (市场准入负面清单(2021年版)), which includes cryptocurrency mining on its list of “eliminated” business activities.

NDRC spokesperson Meng Wei (孟玮) said that cryptocurrencies are a special type of “virtual commercial product” that are not a form of real money.

“[Cryptocurrency] is not issued by a monetary authority, it is not a statutory or mandatory form of payment, and it cannot circulate or be used on the market as money,” said Meng at a press conference held on 16 November.

“Because activities in relation to virtual currencies are categorised as illegal financial activity, all cryptocurrency mining conduct is an extremely severe form of hazard,” said Meng.

“Cryptocurrency mining consumes large amounts of energy and emits large amounts of carbon…rectification of cryptocurrency mining activities has major significance for expediting the optimisation of China’s industrial structure, driving emissions reductions and achieving carbon targets on schedule.”

Meng said that efforts to suppress cryptocurrency mining in China will be ongoing in future, with an especial focus on power providers.

“The next step will be to undertake comprehensive rectification…we will form high-pressure conditions for the ongoing rectification of cryptocurrency mining activity.”

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