The Chinese business publication Caixin, on January 4 reported that contrary to rumors on Wednesday, Chinese authorities haven’t asked bitcoin miners to shut down their operations in the country. 


In brief:

The People’s Bank of China has refuted the rumors of imposing a ban on domestic bitcoin mining activities in the country.

The rumor floating around in the crypto community that China would ban domestic bitcoin mining activities has been refuted by the People’s Bank of China.

The Chinese business publication Caixin, on January 4 reported that contrary to rumors on Wednesday, Chinese authorities haven’t asked bitcoin miners to shut down their operations in the country. In the meeting supposedly held on January 3, the central bank did not discuss any policy regarding shutting down bitcoin mining operations in the country.

Reportedly, a photo on the messaging platform, WeChat allegedly showed Guo Hongcai, a notable and active investor in the bitcoin industry in China, claiming there would be a ban which sparked the rumor. Although, later Guo clarified that the image was fake.

Though the authorities are not banning the mining activities but are focusing on removing the friendly treatment for mining centers near cheap hydroelectric power. The top regulators in China are planning to withdraw preferential benefits available to bitcoin mining companies, like tax deductions and cheap electricity supplies, according to Caixin report.

Earlier China imposed a ban on initial coin offering and cryptocurrency exchanges in the country, and now the country is focusing on neither to promote nor to hinder the mining activities. According to CoinDesk, two cryptocurrency mining pools based in China, Bixin and ViaBTC, have confirmed that they have not received any information regarding the issue from regulators.

However, regardless of denial of such rumor, 45-block, a Chinese bitcoin blog, reported that the PBoC was considering shutting down bitcoin mining. The report also stated that so as to shut down such activities, various government departments would be soon required to report on the number and locations of bitcoin mining facilities within their region.

China is home to nearly two-thirds of the bitcoin hashrate, at present it being around 70 percent of the global hash power of the bitcoin network. Hash rate is the computing capacity that is essential for solving the mathematical function to mine the cryptocurrency.


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