Canaan And Bitmain To Not Suffer From Mining Ban In China
The ban on mining in China will not affect the business of Bitmain and Canaan in the near future, according to the press service of the two leading manufacturers of mining devices.
In April, the National Development and Reform Commission in China (NDRC) presented a new draft law, where mining appears as an “undesirable industry”. Crypto mining companies produce unsafe products (cryptocurrencies have been banned in China since 2017), and they also pollute the environment, the document states. Therefore, regulators intend to ban this industry.
At the same time, because of cheap electricity, China has become the world center of mining, where the largest pools such as BTC.com and Antpool are located, and giants like Bitmain and Canaan operate. On the one hand, the prohibition of crypto mining will reduce the bitcoin reserves in the Chinese market, which will increase the value of the first cryptocurrency. On the other hand, the pressure from the government will still weaken the industry.
Bitmain and Canaan representatives are confident that the bill will not affect their activities for some time. However, it is not known what their business strategy will be in the future. Maybe the law will not affect the mining sphere at all: the Chinese authorities have been trying to ban some industries since 2006, but they continue to develop successfully in 2019.
The NDRC will expect public comments and proposals regarding the future law until May 7. Local crypto supporters believe that mining companies will operate as long as bitcoin is valuable.
As previously reported, Bitmain will present a new line of ASIC miners before the bitcoin halving.