A recent report from the Chinese governmentâ€™s financial committee has reiterated the countryâ€™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 Chinaâ€™s older warnings against the crypto industry.
Chinese Government Report Mentions Bitcoin Mining, Announcement Sparks Speculation
On Friday, a report stemming from Chinaâ€™s 51st meeting of the Central Financial and Economic Affairs Commission led by the organizationâ€™s director, Liu He, discussed cryptocurrency mining in the country. Liu He is also the vice-premier of the State Council of the Peopleâ€™s Republic of China and the Political Bureau of the CPC Central Committee.
On Friday morning, the regional reporter Colin â€˜Wu Blockchainâ€™ also reported on the meetingâ€™s disclosure and said:
Although, a great number of crypto enthusiasts disagreed with Wuâ€™s assessment of the situation. â€œReiterated fudâ€¦ Law has been in place for years,â€ one individual responded to Wuâ€™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.
â€œThe 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,â€ the Chinese journalist wrote. â€œAlthough Chinese government also stated that it will crack down on bitcoin transactions, it mainly focuses on another sentence â€˜preventing the transfer of personal risks to society,â€™ which means that they pay more attention to social stability rather than personal transactions,â€ Wu said in another tweet. The journalist continued:
Bitcoin Price Falls After the News from China Went Viral, Crypto Proponent Skeptical of News Says â€˜It Lacks Detailsâ€™
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 wasnâ€™t impressed by Wuâ€™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 Reutersâ€™ report published three days ago. The reportâ€™s headline said: â€œChina bans financial, payment institutions from cryptocurrency business.â€
This too was a problem for the crypto community, as people believed that recent Reutersâ€™ 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.
â€œ3 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 didnâ€™t just ban crypto. Itâ€™s reiterating an anti-speculation law from years ago,â€ Wang stressed that day.
Wang also seems skeptical of Fridayâ€™s bitcoin mining news stemming from Chinaâ€™s 51st meeting of the Central Financial and Economic Affairs Commission and Wuâ€™s recent tweets.
â€œThis latest â€˜China banâ€™ lacks details. Itâ€™s some high level guidance,â€ Wang said. â€œWeâ€™ll see if thereâ€™s any concrete actions. It feels different to the extent that I donâ€™t recall China has ever made any serious attempt to crack down on â€˜mining.â€™ Just â€˜speculation,â€™â€ he added.
What do you think about the recent update on bitcoin mining from Chinaâ€™s Central Financial and Economic Affairs Commission? Let us know what you think about this subject in the comments section below.
Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.