‘Reiterated FUD’ – Chinese Government to Continue Monitoring Bitcoin Mining Sector
A recent report from the Chinese government’s financial committee has reiterated the country’s stance on bitcoin mining and that it would continue to monitor the sector closely. The report follows a recent article from Reuters published three days ago, which also reiterates China’s older warnings against the crypto industry.
Chinese Government Report Mentions Bitcoin Mining, Announcement Sparks Speculation
On Friday, a report stemming from China’s 51st meeting of the Central Financial and Economic Affairs Commission led by the organization’s director, Liu He, discussed cryptocurrency mining in the country. Liu He is also the vice-premier of the State Council of the People’s Republic of China and the Political Bureau of the CPC Central Committee.
On Friday morning, the regional reporter Colin ‘Wu Blockchain’ also reported on the meeting’s disclosure and said:
This is the first time that the highest level of the Chinese government has clearly proposed a blow to the mining industry.
Although, a great number of crypto enthusiasts disagreed with Wu’s assessment of the situation. “Reiterated fud… Law has been in place for years,” one individual responded to Wu’s tweet. The individual also pointed to older articles from 2017 that reiterated the same talking points as what was said in the recent meeting presided by Liu He.
The regional reporter continued his analysis despite the detractors.
“The impact of this incident is still uncertain, but it is possible that all public mining activities in China will be banned, and exchanges may face severe blows,” the Chinese journalist wrote. “Although Chinese government also stated that it will crack down on bitcoin transactions, it mainly focuses on another sentence ‘preventing the transfer of personal risks to society,’ which means that they pay more attention to social stability rather than personal transactions,” Wu said in another tweet. The journalist continued:
As for cracking down on mining, it may be related to Musk’s recent attack on Bitcoin’s energy consumption. The Chinese government made a commitment to carbon neutrality to the world last year. Unfortunately, bitcoin mining was the first to hit.
Bitcoin Price Falls After the News from China Went Viral, Crypto Proponent Skeptical of News Says ‘It Lacks Details’
The price of bitcoin (BTC) did drop after this announcement went viral across social media platforms and a number of news desks. However, just as the individual who wasn’t impressed by Wu’s reporting, a large majority of the crypto community thinks this China stuff is recycled FUD. The deeper skepticism has been caused by a recent Reuters’ report published three days ago. The report’s headline said: “China bans financial, payment institutions from cryptocurrency business.”
This too was a problem for the crypto community, as people believed that recent Reuters’ report was exaggerating a reiterated talking point. For instance, Qiao Wang from Defi Alliance tweeted about the situation, after Reuters published the banning report earlier this week.
“3 dumb things happened within the last hour: 1) Reuters writing a misleading article on China banning. 2) People retweeting Reuters and believing it. 3) Market dumping on the Reuters news. China didn’t just ban crypto. It’s reiterating an anti-speculation law from years ago,” Wang stressed that day.
Wang also seems skeptical of Friday’s bitcoin mining news stemming from China’s 51st meeting of the Central Financial and Economic Affairs Commission and Wu’s recent tweets.
“This latest ‘China ban’ lacks details. It’s some high level guidance,” Wang said. “We’ll see if there’s any concrete actions. It feels different to the extent that I don’t recall China has ever made any serious attempt to crack down on ‘mining.’ Just ‘speculation,’” he added.
What do you think about the recent update on bitcoin mining from China’s Central Financial and Economic Affairs Commission? Let us know what you think about this subject in the comments section below.