China will not crack down on bitcoin mining, officials have confirmed in new documents, Cointelegraph reported. Bitcoin startup Blockstream CSO’s Samson Mow and others in the industry stated on Wednesday that mining is no longer on Beijing’s list of industries it views as undesirable.
The change in status for the leading digital currency came via a new edition of China’s Industrial Structure Adjustment Guidance Catalog, which takes effect at the beginning of 2020.
“China’s National Development and Reform Commission has removed #cryptocurrency mining from the list of industries they want to eliminate. Bullish for #Bitcoin,” Mow commented.
A previous version of the document earlier this year had identified bitcoin mining as one of the government’s targets.
It is some rare good news for bitcoin-related activities in China, a country where cryptocurrency outside the control of the central bank remains all but banned.
President Xi Jinping’s recent endorsement of blockchain technology coincided with a dramatic rise in the price of bitcoin. However, local media warned against construing the remarks to be supportive of crypto.
Following the most recent announcement, however, there was little change in the price of bitcoin, which was around $9,400 on Wednesday evening (Hong Kong time).
Bitcoin mining is a profitable industry in China, with cheap electricity meaning major actors continue to operate in the country. Canaan Creative, one of the biggest bitcoin mining rig manufacturers, is expected to launch a $400 million initial public offering later this month.