It Is Difficult to Completely Prohibit BTC Mining in China, A Chinese Official Said

Abstract : The regulatory action carried by Chinese regulatory agencies this time mainly focused on companies that mine cryptocurrency.

ChainDD
ChainDD

Jun 08

June 8 (ChainDD) According to China News Weekly, Chen Weigang, the supervisor of the Board of Supervisors of Key Financial Institutions of the China Banking and Insurance Regulatory Commission, said in an interview that the BTC mining in China was still difficult to be completely banned, and the regulatory action carried by Chinese regulatory agencies this time mainly focused on companies that mine cryptocurrency.

In his opinion, it can be controlled through the financial audit of the income and expenditure side. For example, the BTC mined by enterprises will eventually be reflected in revenues and profit appreciations. If a part of the profit belongs to BTC mining, enterprises cannot be allowed to put the related profit into their account. In this way, the enterprise BTC mining behaviour can be blocked.

However, some BTC miners buy mining machines in some areas with abundant water and electricity. How to block it remains to be seen in the next step. Many large bitcoin miners have been "cut off", while the remaining small bitcoin miners are large in number, but the total amount is small. 

Chen Weigang also believed that Bitcoin did not even belong to an investment product, it can only be regarded as a "hyped product ". Overseas Bitcoin trading was more like a game among some institutions and consortia, but in China, it was mainly invested by retail investors.

Just like the previous P2P, in fact, the similar situation appeared earlier in the United Kingdom, the United States and other countries than in China. However, at the peak of P2P business, a wide range of people have been involved in it. So does Bitcoin. On the trend of foreign standardization, Chen Weigang said that what can exist in other countries did not mean that it was reasonable to exist in China.

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