The Chinese government is trying to tighten the noose further on cryptocurrency activity. In a statement on Friday, state planners from China’s National Development and Reform Commission (NDRC) said it had included the move in the 2021 project for a negative market access list. If the project is successful, investment in the area will be prohibited.
The NDRC publishes the list together with the Ministry of Commerce. According to China’s State Council, the list describes sectors of the economy in which investors cannot take risks. However, you can invest in areas, not these.
The 2020 list version covers 123 industries. This year that number has decreased. The project suggests that China will ban investment in 117 different industries.
China has banned cryptocurrency mining
The GDR accepts public opinion on the negative draft list. Citizens can submit their applications from 8 to 14 October 2021. It remains to be seen what effect their participation will have on the final list.
This development is the latest in China’s attack on the crypto sector. The country’s regulator banned mining and trading of cryptocurrencies earlier this year. Then the Central Bank of China, the People’s Bank of China (PBoC), defines cryptocurrency transactions as illegal financial activities.
Investors looking for safe haven from crypto
The PBoC decision prohibits banks and exchanges from offering crypto services in the country. This history forces investors to seek crypto-friendly destinations for their businesses.
Hong Kong is a friendly one. For example, following Friday’s announcement, Powercrypto Holdings said it would move its cryptocurrency operations to the country.
The company is a subsidiary of Powerbridge Technologies and specializes in the extraction of Bitcoin (BTC) and Ethereum (ETH). This will move 600 BTC and 2000 ETH mining machines. The machine has a hash of around 60 PH/s or 1000 GH/s.
Prior to the crackdown, China accounted for more than 70 percent of the world’s cryptocurrencies. The market has overcome the impact of this Chinese ban.
The value of BTC, for example, is up 30 percent after the recent round of restrictions. During press, the crypto was trading for $54,214.
China tracks e-yuan
Ironically, China continues to develop the digital yuan even as it cleans up the crypto sector. The country is one of the many leaders in the Central Bank (CBDC) race to develop a digital currency.
The PBoC is taking steps to introduce e-yuan. It intends to launch an electronic currency for mass use by February 2022. It will pilot the currency in 11 regions and cities across the country.
It attracted leading technology companies and banks to help with pilot studies. To date, there are about $30 million worth of e-yuan in circulation. However, the public’s response to digital currencies has been overwhelming. Many remain indifferent to this and prefer traditional means of payment.