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Chinese Government Urged to Reconsider Crypto Mining Ban: Details — TradingView News
Influential voices within academia and the tech sector are urging the Chinese government to reconsider its strict ban on cryptocurrency mining. This call for reassessment comes amid global changes in the crypto mining ecosystem and potential geopolitical shifts that could impact economic strategies.
Journalist Colin Wu recently highlighted a significant statement by Wang Yang, vice president of the Hong Kong University of Science and Technology. Wang criticized China’s blanket ban on cryptocurrency mining, calling it “very imprudent.”
According to Wang, this policy inadvertently pushed Chinese crypto miners to relocate to the United States. He said the exodus of Chinese miners has contributed more than $4 billion in tax revenue to the U.S. economy. This economic impact shows the broader consequences of the ban, beyond the immediate loss of industry within China’s borders.
Historical context and current position
In 2021, the Chinese government imposed a blanket ban on all crypto transactions and mining, citing concerns over financial stability, environmental impact, and illegal activities. This move followed a series of previous restrictions aimed at curbing speculative trading and ensuring financial security.
The ban has led to a mass exodus of cryptocurrency mining operations, particularly Bitcoin BitcoinUSD mining, from China to more crypto-friendly jurisdictions, including the United States, Kazakhstan and Canada. This migration significantly altered the global distribution of mining power, with the United States emerging as the primary beneficiary.
Economic and geopolitical impacts
The migration of Chinese miners to the United States has strengthened its position as a leading hub for cryptocurrency mining. This shift not only strengthened the United States’ tax base, but also strengthened its technological and infrastructure capabilities in the blockchain sector.
Furthermore, Wang highlighted the potential geopolitical ramifications of the upcoming US presidential election. With the possibility of Donald Trump’s re-election, Wang suggested that the Chinese government should reevaluate the importance of cryptocurrencies. The Trump administration could adopt more favorable policies towards cryptocurrencies.