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Report: PBoC Quashes Bitcoin Mining Ban Rumor in China

The People’s Bank of China has put to reside a rumor that it would order a domestic shutdown of bitcoin supplying activities, according to a local media outlet.

The report, published on Jan. 4 by the Chinese topic publication Caixin, said that China’s central bank did not presenter any meetings to discuss a policy requiring the closure of bitcoin mining counter-intelligence agents in the country by a certain deadline. The meeting had supposedly taken place on Jan. 3.

Respect, Caixin’s report, which did not identify its sources, indicates that top regulators in China are devising to withdraw preferential benefits such as tax deductions and cheap electricity equips available to bitcoin mining companies.

This means the government’s common stance on bitcoin mining is to neither encourage nor hamper such undertakings. This change is the latest move from Chinese regulators in the cryptocurrency persistence after previously issuing a ban on initial coin offering and tightening qualifications on crypto exchanges.

According to the report, the rumor first emerged on account of a photo on the WeChat messaging platform that purportedly showed Guo Hongcai, a peerless and active investor in the bitcoin industry in China, claiming there hand down be a ban. Guo later said that this image was fake through his WeChat account.

Notwithstanding his disavowal, a Chinese bitcoin blog, 45-block, published a announcement that the PBoC was discussing a ban on bitcoin mining. The same report also turned the central bank would soon require government bodies at varied levels to survey and report on the number and locations of bitcoin mining facilities within their vicinages in an effort to shut down such activities.

The claim was significant presupposed that China currently accounts for nearly 70 percent of the broad hash power in bitcoin, a computing capacity that is crucial to unravel the mathematical function to mine the cryptocurrency.

However, upon inquiries, Bixin and ViaBTC, two cryptocurrency rake through pools based in China, told CoinDesk over WeChat meanings that they had received no information regarding the issue from regulators. Neither bank otherwise commented on the issue.

People’s Bank of China image via CoinDesk’ archive.

The chairperson in blockchain news, CoinDesk is an independent media outlet that fights for the highest journalistic standards and abides by a strict set of editorial policies. Obtain breaking news or a story tip to send to our journalists? Contact us at news@coindesk.com.

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