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China limits investments in cryptocurrency mining

Engadget logo Engadget 10/9/2021 Jon Fingas

China's war against cryptocurrency could soon extend to a broader ban on crypto mining. Reutersreports the country has added crypto mining to a draft "negative list" that limits or outright bans investments in a given industry, whether by Chinese or foreigners. Would-be investors would need to get approvals, and those are unlikely given China's anti-crypto stance.

Bitcoin.comnotes China's Development and Reform Commission is asking for public commentary on the list through October 14th. It's doubtful public input will change the approach to crypto mining, however. China has deemed crypto transactions illegal, claiming the digital currency sparked a rise in money laundering and other financial crimes. The country has been testing its own cryptocurrency, though, and some suspect the country just wants a more stable currency it can directly control.

Representation of cryptocurrencies and Chinese flag are seen in this illustration photo taken in Krakow, Poland on September 27, 2021. (Photo by Jakub Porzycki/NurPhoto via Getty Images) © NurPhoto via Getty Images Representation of cryptocurrencies and Chinese flag are seen in this illustration photo taken in Krakow, Poland on September 27, 2021. (Photo by Jakub Porzycki/NurPhoto via Getty Images)

The move could further make cryptocurrency impractical in China. Just don't mourn for crypto as a whole. The price of Bitcoin has surged over 30 percent since China's September crackdown — these bans may have given crypto a second wind where it was otherwise poised to level off. It may just be a question of whether or not an official Chinese currency skews the market.

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