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No stranger to draconian intervention and suppression of freedom, China once again threatened to implement a crypto crackdown. According to the Asian juggernaut’s state planning agency, government officials seek to eliminate bitcoin mining within their borders.

From a Reuters report, China’s National Development and Reform Commission stated on Monday that it seeks public opinion on industries that it wants to “encourage, restrict or eliminate.” Specifically, the commission would like to phase out bitcoin mining because it falls under activities that are illegal, “unsafe, wasted resources or polluted the environment.”

Levering so many profound changes to the financial ecosystem, bitcoin and blockchain assets have sparked a massive rethink. Naturally, this dynamic catalyzed a positive response among the general public. However, the movement also created many enemies for the burgeoning digital technology. As such, it’s no surprise that the Chinese have stepped up their efforts toward a meaningful crypto crackdown.

First publishing their report in 2011, the National Development and Reform Commission has apparently shaped China’s economic infrastructure. But despite their earlier “successes” – can crackdowns really be considered successful policies? – it’s not clear how they’ll stop bitcoin. The cat is long out of the bag.

 

Crypto Crackdown has a Silver Lining

Of course, any time China threatens a crypto crackdown, it’s not a positive for the blockchain industry. Currently, the second-largest economy in the world is the undisputed leader in computer hardware designed for crypto mining. With its massive population size, it can easily be the biggest blockchain power.

Doing so would actually help China exit from the hegemonic dollar-based financial system. Instead, their government is doing everything possible to stay in the fiat system. That doesn’t jive with what the alternative media frequently asserts, that China is a rising competitor to the U.S.

Whatever the motivation, the output appears decisively negative for cryptocurrency investors. However, this latest crackdown features a subtle, positive message: major world governments fear the blockchain and the disruptive power it possesses.

I can’t help but that this crackdown is occurring right when bitcoin and other digital assets have regained their mojo. At time of writing, bitcoin sits at just under the $5,200 level. For months prior, the king of cryptocurrencies languished around the $3,000 mark.

Indeed, if the National Development and Reform Commission would have kept their mouth shut, no one would be the wiser. But now that they threatened another crypto crackdown, millions of Chinese will take a look at current prices.

If an upside panic ensues, the commission will have no one to blame but themselves.