China Cancels Plans to Ban Crypto Mining and Signs Blockchain Push Agreement

China Cancels Plans to Ban Crypto Mining and Signs Blockchain Push Agreement

The regulatory situation in China for cryptocurrencies has been shaky to say the least. A large amount of uncertainty has made investors unsure how to approach the rapidly growing sector. Now, however, China appears to have put off its potential plans to ban cryptocurrency mining – amid a crypto-friendly reversal.

New documents say China will not ban crypto mining

This news came on November 6th, from a number of different cryptocurrency news outlets. Specifically, these latest news reports suggest that the Chinese government no longer considers crypto mining an undesirable industry.

Furthermore, this change was first made public through the latest update to China’s Industrial Structure Adjustment Guidance Catalog. Although this formally comes into effect at the start of 2020, this public adjustment shows China’s changing attitude towards crypto.

Moreover, several cryptocurrency observers have already commented on this notable change in policy. For example, the CSO of Blockstream, Samson Mow, made a public comment on how this is a bullish sign for Bitcoin.

”China’s National Development and Reform Commission has removed #cryptocurrency mining from the list of industries they want to eliminate. Bullish for #Bitcoin.”

To be precise, an earlier version of this industrial document includes cryptocurrency mining as an undesirable activity. This meant that the Chinese government was targeting the activity in order to reduce it. Now, this has been removed – and comes as China is increasingly looking to reverse its stance on cryptocurrencies.

China signs MoU with Hong Kong’s de facto central bank

Last month, China’s President – Xi Jinping – said that China needs to dramatically boost its blockchain adoption. The recent news that the country is now welcoming crypto mining is not the only good news for cryptocurrency enthusiasts, however.

China has also signed a new agreement with the de facto central bank of Hong Kong. The recent announcement saw the Hong Kong Monetary Authority sign a Memorandum of Understanding with a subsidiary to the People’s Bank of China (PBoC). 

Furthermore, this deal looks to create a Proof-of-Concept for a trade finance platform in Q1 of 2020. This project will link the PBoC’s existing Trade Finance Platform with the Hong Kong Monetary Authority’s existing eTradeConnect platform.

These are only two of the latest developments to come following president Xi’s recent reversal regarding blockchain and crypto. Additionally, China’s regional governments along with other actors have already put forward around $6 billion worth of blockchain funds. The stated intent is to drive further adoption and support of blockchain technology.

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