Bitcoin rumors continue to flow out of China with the latest one claiming that bitcoin mining has been banned in China.
Reports citing an unconfirmed circular from Sichuan Electric Power Company emerged in China this week that allegedly claimed that the use of electricity to produce and mine bitcoin is illegal. The unconfirmed circular was than picked up by local media companies across the country and even global media outlets. What followed was a barrage of varying reports of how bitcoin mining will suffer because of the ban in China.
Subsequently a trusted news source CnLedger followed up on the story by other companies and quickly debunked the report based on confirmation from the Sichuan Electric Power Company that they had made mistakes in the circular and even included information that wasn’t verified.
The electric power company also admitted that they had released the notice in a hurry and that they are in no position to either ban or restrict bitcoin mining. According to Ciaxin, the Chinese government isn’t mulling a ban on bitcoin mining or any activity surrounding cryptocurrency mining in the region as of yet.
The report based on incorrect notice released by the electric power company in a hurry led to a series of false reports around the legality of 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.