China steps up Crypto Mining scrutiny; Adds it to ‘Negative List’ of Industries

By Amirtha P S, Desk Reporter
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China is tightening its control over digital finance by adding cryptocurrency mining to a draft ‘negative list’ of industries, according to a document released by the state planner.

The ‘negative list’ details sectors that are off-limits to both Chinese and foreign investors. The investments in the industries listed out are restricted by the country.

The 2021 draft of the ‘negative list’ of industries in which investment is either restricted or prohibited has reduced the number of sectors from 123 in 2020 to 117. The industries which are not on the list are open for investment to all with no approvals required.

Earlier this year, the regulators in China banned cryptocurrency trading and mining and last month, the country’s central bank vowed to sweep out “illegal” cryptocurrency activities. The crackdown has prompted cryptocurrency exchanges to cut ties with Chinese users.

The country has been tightening its control over public discourse, cracking down on show business for “polluting” society and asking mobile browsers to eliminate the spreading of rumors, the use of sensationalist headlines, and the publishing of content that violates the core values of socialism.

The state planner has stated that it was pausing the investment of “non-public” capital into a variety of publishing activities, including live broadcasts, news-gathering, editing and broadcasting entities, and the operation of news.

Non-public capital cannot be involved in the introduction of news released by overseas entities or summits and award selection activities in the field of news and public opinion, the National Development and Reform Commission (NDRC) added.

Related: UAE-based cryptocurrency exchange BitOasis secures $30mn to fuel expansion goals


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