Cryptocurrency Mining Farm

Rumours about crackdown on bitcoin miners are slowly clearing

A recent news report from financial news site Caixin provides more clearance about the spreading rumors that the Chinese government is trying to crack down on miners.

It states that the People’s Bank of China (PBoC) did not hold an internal meeting on January 3, nor did they discuss a moratorium on Bitcoin mining.

The policy side of bitcoin mining is becoming clearer since late November 2017 1 Policy makers are not striving for a ban, but rather are trying to discourage it. Simply put, They are no longer giving any mining incentives, including taxes, electricity, land, etc. to Bitcoin exchanges. These exchanges received cheap hydroelectric power rates and tax cuts since it supported the revenue streams of local power operators while proving a dependable employer near their base of operations.

The rumor about the crackdown first spread after a Wechat photo message from popular bitcoin advocate and industry investor Guō Hóng Cái (郭宏才) had gone viral. It stated (roughly translated):

I have the exact message that all the mines will be seized after the 5th and the crime of holding and trading virtual currency will be disrupted by the financial order.

While the message was later refuted as manipulation, shortly after, another rumor spread saying (roughly translated):

the central bank held a closed-door meeting today (January 3) to stop the Bitcoin mines deadline.

The report further says, without providing a clear source, that the BoC did not hold a closed-door meeting on the 3rd of January. However, there are plans to phase out preferential treatment towards the miners.

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