Latest China Rumor: Bitcoin Mining Will Be Allowed

Investing, News, Regulation | September 19, 2017 By:

China’s bitcoin ban may not extend to mining the cryptocurrency. That’s the assertion of Jihan Wu, the co-founder of hardware manufacturer Bitmain and Antpool, which maintains the largest hashrate for bitcoin mining.

In comments relayed via Twitter by crypto investor John McAfee following a lunch with Wu and Bitcoin Cash backer Roger Ver, McAfee claimed that China is not banning bitcoin mining. He cited intelligence gleaned from Wu, who he maintained  “is more connected than me or [you].”  China accounts for about 65 percent of the bitcoin mining hashrates in operation.

What’s not clear at the moment is just how far China is extending its reach into bitcoin and other cryptocurrencies. So far, at least four major exchanges have announced plans to shut down. At least one official-sounding document has emerged on social media claiming that China’s residents will not be able to access foreign bitcoin exchanges or peer-to-peer exchanges.

The Wall Street Journal has reported that a meeting between Chinese regulators and industry members resulted in a decision that over-the-counter bitcoin trading would not continue. That left open the door for institutional trading by investment firms, although none of the strategies have been made public. All of that uncertainty has caused a see-saw effect in the cryptocurrency markets, as investors react to the latest rumors.