China Takes Out Mining from Potential Ban List
From 2020, the Chinese government will no longer view mining as a borderline illegal activity.
China has removed mining from the list of activities monitored for a crackdown, reported local media. The CnLedger Twitter account, tracking regional developments in the crypto sector, reported that miners may breathe easy from 2020 onward, as no new limited regulations are in the pipeline.
Crypto mining, which was listed in an industry overview, no longer bears the remark for being an industry to be eliminated. In any case, Chinese mining has not shown any signs of real fears, despite the official stance.
In fact, the past quarter saw a significant pickup in mining, with a record as high as 120 EH/s based on limited reports. The cheap hydroelectric power and favorable Bitcoin (BTC) prices led miners to expand their activity.
The composition of mining pools shows a dominance of Chinese-based entities, though with a shift among top miners. Poolin and F2Pool take the lead for block production, and Antpool and BTC.com add their hashing power to mine more than 60% of Bitcoin blocks.
The current BTC hashrate hovers around 90 EH/s, with a slight setback from recent highs. The overall reaction in terms of price action and network activity has not shown a direct impact. Dovey Wan, a commenter on the Chinese activity in the crypto sector, has noted a discrepancy of the fear of a mining ban in China:
Overall, crypto social media have also criticized the Chinese mining sector, for virtually taking over the BTC network.
Mining remains viable in 2019, and Bitcoin invites the most investment and activity. But there are early signs that ASIC may be mining the Ethereum (ETH) network in the past period of about three months. Chinese entities are also highly active in staking networks, including EOS and TRON.
Despite the mainland China ban, exchanges like OKEx and Huobi also reflect local interest in crypto-to-crypto trading. The exchanges operate as offshore companies, but grab local demand due to the opportunity of Tether (USDT) to transfer funds worldwide.