China to Insert another Nail in Crypto Coffin
China has proposed to include crypto mining activity in the “Negative List for Market Access”. If the proposed plan is executed that a limit will be set up for Chinese investors wherein they will have to keep their distance from mining activities. This is yet another nail inserted by China in the crypto coffin.
There is a list of industries maintained by Chinese authorities. Within this list, there are certain industries that have been blacklisted. Consequently, investors are restrained from investing with any industry which has been blacklisted. The list is called “Negative List for Market Access”, which is issued every year after Government’s approval.
The draft of the list for the year 2021 has been proposed by the National Development & Reform Commission of China (NDRC). It was announced on 8th October 2021 by NDRC that the 2021 list has been prepared with the collaboration of the Chinese Commerce Ministry. Astonishingly, the crypto mining industry too has been included in the negative list. This means that the crypto mining industry is now officially blacklisted in China. Resultantly, anyone in China willing to invest in the industry is now legally debarred from engaging with the mining industry.
Last year’s list had 123 industries in it, however, at that time crypto mining was not inducted in the list. However, this year, where apparently the list has been reduced down to 117 industries, crypto mining and related activities have been enlisted. Those industries which are not included in the list, would not be required to obtain any prior permissions. However, the industries which are blacklisted will need to first obtain permission and if permission is granted, then they can do business. However, it is up to the authorities whether they want to grant permission or not.
However, the negative list for the year 2021 is not final and binding but can be amended or altered as well. As per past practice and procedure, the list will be first approved by the general public after seeking their opinions by NDRC. This whole process of a public opinion involves a total of 7 days. In the case of 2021’s negative list, the time has commenced on 8th October which is going to end of 14th October 2021.
Once again China is showing to the crypto world that it has no place for private crypto and crypto mining in the country. Crypto use and mining is banned in China and the inclusion of the mining industry in negative list is another nail in the coffin. On the other hand, crypto trading and investment companies have also boycotted China and crypto users residing therein. They have expressly denied the right to serve anyone from China because of decisions made and actions taken by Chinese authorities against crypto.