Topic: [2017-11-16] Bitcoin Mining in China is Not Banned Yet, Contrary to Reports (Read 1367 times)

I really thought that the initial news is another way to downplay the ever surging price of bitcoin. Specially that bitcoin has recovered by the attacks on Bitcoin Cash. They have to think of another way to pull the price down again and shift the power to Bitcoin Cash. However, bitcoiners have already forgotten about China, that any news coming from them does not carry the way weight as before. If this news came out during the height of their ICO banning, then it can seriously dent the price even more. But since its been more than a month, this news has no effect at all. In fact, bitcoin remain resilient and I think it has broke the ATH once more, current price is $7700 and there is no sign of stopping.

The problem is that those kind of error does not give us confidence.

It's impossible to take anything seriously when the stakes are insanely high, especially when it comes to getting the price to sink. On top of that we have to deal with incompetent translators not doing their job properly, where more often than not a wrongly translated statement gets a negative tint to it, while in reality it's not negative at all. That's why I always wait for sources to actually come up with a statement confirming what others have been reporting about -- without a source confirmation, all news articles should be deemed false/fud.

I have seen the paper trail that has been passed from a electric company that started the said “reports”.. The government already give erratum to that certain incident and that it was just misunderstanding or plain graphical error.. This is one of mean reason bitcoin cash dropped this week and gladly it was immediately stopped by those in the authority.. This issue is also used for bitcoin cash increase that’s for sure..

"Unconfirmed Reports and Rumors" Exactly! just what i just thought, another fake news to create FUD, Fvck.. This is getting serious, China isn't yet done on playing and manipulating the Community for their own benefit. Well, Another Drama has just resumed. These news of Pausing Banning, Pausing Trading, Resuming Later, Releases public statement and more shit is just tiring, just Get out China! Bitcoin can move forward without you and your control freak Government.

Just another rumor from China,
Chinese miners have spent Million of dollars to build their mining farms and pools.
They have to pay over $ 1,017 to cover cost of electricity bills per day, even for cheap electricity, it is still a big amount for government.
Which mean, bitcoin mining farms is an asset in China, it's win-win situation for both, as long as they pay the electricity bills.
So, there's no any reason for government to prohibit cryptocurrency mining. Even during exchanges cracked down, mining farm still operated without any problem.

Throughout this week, false reports regarding the legality of bitcoin and cryptocurrency mining have emerged. Local sources have revealed that bitcoin mining is not banned as of yet.


Initially, Sichuan Electric Power Company, released an unconfirmed circular which claimed that the use of electricity to produce and mine bitcoin is illegal. Caijing, an independent news publication based in Beijing, first reported on the circular released by Sichuan Electric Power Company, and more media outlets followed.

CnLedger, a trusted news source of the Chinese cryptocurrency market, quickly debunked the report, after Sichuan Electric Power Company admitted that it had made several mistakes and included unverified claims on its circular.

“The head of that company has clarified that they made mistakes on the statement, as they are not a government administrative department, and have no rights to determine whether bitcoin mining is illegal,” wrote CnLedger.

According to the county electric power company in Sichuan, the firm did release a notice which explicitly described bitcoin mining as an illicit operation. But, an executive of the company stated that the circular was released in a hurry and that the company is not in a position to ban or restrict bitcoin mining.

“However, head of the company clarified to Caixin today that the notice was made in a hurry; it is not their role to determine whether bitcoin mining is against the law. Actually the company is not yet connected to national grid, and relies on local stations to get electricity,” added CnLedger.

More importantly, state-owned business and finance news publication Caixin, revealed that the government has no intent of banning bitcoin mining or any activity surrounding cryptocurrency mining in the region as of yet.

Caixin’s report was particularly important and notable to the controversy surrounding a potential bitcoin mining ban in China as it has operated as the official press of the Chinese government. CnLedger explained that Caixin has communicated with the government, which announced that bitcoin is not illegal as of current. CnLedger revealed:

“Caixin also mentioned that technically these 6 stations are not qualified grid power supplier. So they are not allowed to the grid anyway. The electricity they produced is considered “wasted” power. Previously Caixin has also contacted those who are close to the regulators, and was told that currently there is no plan to forbid bitcoin mining.”

Conclusively, a premature and unverified circular of a country grid operator led to a series of false reports around the legality of bitcoin mining. So far, the government and state-owned press have evidently demonstrated that the country has no intentions to ban bitcoin mining.

In the upcoming months, several analysts predict the Chinese government to provide necessary regulatory frameworks around cryptocurrency trading and bitcoin mining. Businesses have not ruled out the possibility of cryptocurrency trading resumption, given that the Chinese government has emphasized the need for strict Know Your Customer (KYC) and Anti-Money Laundering (AML) policies for cryptocurrency exchanges.

Source: https://www.cryptocoinsnews.com/bitcoin-mining-in-china-is-not-banned-yet-false-reports/