HK Regulates Crypto Mining, as China Considers Ban

Hong Kong has moved to regulate cryptocurrency mining, the computing process that generates cryptocurrencies such as Bitcoin, with regulators attracted to the industry by the massive amounts of money it has generated.

The sale of mining equipment and any other products and equipment necessary to mine for virtual assets should be regulated under the Trade Descriptions Ordinance (TDO), according to a written response published by Secretary for Financial Services and the Treasury James Lau on April 3.

The TDO says that such activities could be considered as “unfair practices” subject to a fine of HK$500,000 or five years in prison.

Earlier this year, three Hong Kong citizens were arrested for convincing 20 people to invest more than HK$3.7 million (around $471,400) in crypto-related equipment and services.

The move in Hong Kong parallels comments by China’s National Development Reform Commission (NDRC), the country’s top economic planner, which said on April 9 that crypto-mining is among a plethora of industries it plans to eliminate because they “seriously wasted resources.”

Moving to ban

The NDRC is now seeking public feedback on its new guidelines. The ban could take effect as soon as May.

The whole cryptocurrency sector has been under heavy scrutiny in China since 2017 when regulators shut down multiple local cryptocurrency exchanges.

“The move could be the final nail in the coffin for this popular but yet unstable activity in the country,” said Reginald Alvin Chin, executive director at Yunfeng Financial Group.

Lau’s written response added to concerns that the environment for virtual assets investment is also becoming more difficult in Hong Kong.

Last month, Bitmain Technologies Ltd., the world’s biggest producer of cryptocurrency mining chips, decided to let its application for a Hong Kong initial public offering lapse.

The listing application, which was initially filed in September, expired on March 26, according to the Hong Kong stock exchange’s website.

“We do recognize that despite the huge potential of the cryptocurrency and blockchain industry, it remains a relatively young industry which is proving its value,” Bitmain said in a statement. “We hope regulatory authorities, media and the general public can be more inclusive to this young industry.”

Chin, from Yufeng, said a slump in the price of Bitcoin and other major cryptocurrencies over the past year has made it very difficult for the industry to attract investors.

Risky business

“In addition, the price volatility of these virtual currencies made such investment very dangerous. There is just too much risks involved,” he said.

“I do not think HKEX is too keen in becoming the first exchange to allow a crypto-mining company to be listed,” he added.

Citing unidentified sources, the South China Morning Post also said in late December that the HKEX and the city’s regulators consider IPOs by cryptocurrency firms to be “premature” at the moment.

Bitmain is the not the only crypto hardware firm to give up a listing in Hong Kong.

Canaan Inc., a smaller rival to Bitmain, also saw its Hong Kong IPO application expire and is now reportedly considering selling shares in the U.S. instead.

52 Readers Commented

Join discussion
  1. Pingback: HK Regulates Crypto Mining, as China Considers Ban - CryptoScoop 23 Apr, 2019

    […] Source Link […]

  2. Pingback: HK Regulates Crypto Mining, as China Considers Ban – BitcoinInfo.com News 23 Apr, 2019

    […] HK Regulates Crypto Mining, as China Considers Ban – Harbour Times […]

  3. Pingback: HK Regulates Crypto Mining, as China Considers Ban – BTC.com.ph News 23 Apr, 2019

    […] HK Regulates Crypto Mining, as China Considers Ban – Harbour Times […]

  4. Pingback: HK Regulates Crypto Mining, as China Considers Ban – BitcoinLifestyle.com News 23 Apr, 2019

    […] HK Regulates Crypto Mining, as China Considers Ban – Harbour Times […]

  5. Pingback: Hong Kong Restricts Bitcoin Mining, Will it Lead to a Change in Attitude Towards Crypto? - Crypto News Experts 24 Apr, 2019

    […] Treasury, informed the Legislative Council that the purchase of mining equipment falls under the Trade Descriptions Ordinance. This move places restrictions on who can mine cryptocurrencies like bitcoin. But, does it also […]

  6. Pingback: Hong Kong Restricts Bitcoin Mining, Will it Lead to a Change in Attitude Towards Crypto? - Crypto Mak 24 Apr, 2019

    […] Treasury, informed the Legislative Council that the purchase of mining equipment falls under the Trade Descriptions Ordinance. This move places restrictions on who can mine cryptocurrencies like bitcoin. But, does it also […]

  7. Pingback: Hong Kong Restricts Bitcoin Mining, Will it Lead to a Change in Attitude Towards Crypto? – My Crypto 24 Apr, 2019

    […] Treasury, informed the Legislative Council that the purchase of mining equipment falls under the Trade Descriptions Ordinance. This move places restrictions on who can mine cryptocurrencies like bitcoin. But, does it also […]

  8. Pingback: Hong Kong Restricts Bitcoin Mining, Will it Lead to a Change in Attitude Towards Crypto? – Cryptocurrency: The News 24 Apr, 2019

    […] Treasury, informed the Legislative Council that the purchase of mining equipment falls under the Trade Descriptions Ordinance. This move places restrictions on who can mine cryptocurrencies like bitcoin. But, does it also […]

  9. Pingback: Hong Kong Restricts Bitcoin Mining, Will it Lead to a Change in Attitude Towards Crypto? – Crypto Mining 24 Apr, 2019

    […] Treasury, informed the Legislative Council that the purchase of mining equipment falls under the Trade Descriptions Ordinance. This move places restrictions on who can mine cryptocurrencies like bitcoin. But, does it also […]

  10. Pingback: Hong Kong Restricts Bitcoin Mining, Will it Lead to a Change in Attitude Towards Crypto? - Free Bitcoin Directory 24 Apr, 2019

    […] Treasury, informed the Legislative Council that the purchase of mining equipment falls under the Trade Descriptions Ordinance. This move places restrictions on who can mine cryptocurrencies like bitcoin. But, does it also […]

  11. Pingback: Hong Kong Restricts Bitcoin Mining, Will it Lead to a Change in Attitude Towards Crypto? – Coinpostit 24 Apr, 2019

    […] knowledgeable the Legislative Council that the acquisition of mining tools falls beneath the Trade Descriptions Ordinance. This transfer locations restrictions on who can mine cryptocurrencies like bitcoin. But, does it […]

  12. Pingback: Hong Kong Restricts Bitcoin Mining, Will it Lead to a Change in Attitude Towards Crypto? – iCryptodesk 24 Apr, 2019

    […] Treasury, informed the Legislative Council that the purchase of mining equipment falls under the Trade Descriptions Ordinance. This move places restrictions on who can mine cryptocurrencies like bitcoin. But, does it also […]

  13. Pingback: Hong Kong Restricts Bitcoin Mining, Will it Lead to a Change in Attitude Towards Crypto? | Bitcoin price media 24 Apr, 2019

    […] Treasury, informed the Legislative Council that the purchase of mining equipment falls under the Trade Descriptions Ordinance. This move places restrictions on who can mine cryptocurrencies like bitcoin. But, does it also […]

  14. Pingback: Hong Kong Restricts Bitcoin Mining, Will it Lead to a Change in Attitude Towards Crypto? – Digital Miner 24 Apr, 2019

    […] Treasury, informed the Legislative Council that the purchase of mining equipment falls under the Trade Descriptions Ordinance. This move places restrictions on who can mine cryptocurrencies like bitcoin. But, does it also […]

  15. Pingback: Hong Kong Restricts Bitcoin Mining, Will it Lead to a Change in Attitude Towards Crypto? – Bitcoin Business Daily 24 Apr, 2019

    […] Treasury, informed the Legislative Council that the purchase of mining equipment falls under the Trade Descriptions Ordinance. This move places restrictions on who can mine cryptocurrencies like bitcoin. But, does it also […]

  16. Pingback: Hong Kong Restricts Bitcoin Mining, Will it Lead to a Change in Attitude Towards Crypto? 24 Apr, 2019

    […] Treasury, informed the Legislative Council that the purchase of mining equipment falls under the Trade Descriptions Ordinance. This move places restrictions on who can mine cryptocurrencies like bitcoin. But, does it also […]

  17. Pingback: Hong Kong Restricts Bitcoin Mining, Will it Lead to a Change in Attitude Towards Crypto? | BitcoInternet 24 Apr, 2019

    […] Treasury, informed the Legislative Council that the purchase of mining equipment falls under the Trade Descriptions Ordinance. This move places restrictions on who can mine cryptocurrencies like bitcoin. But, does it also […]

  18. Pingback: Hong Kong Restricts Bitcoin Mining, Will it Lead to a Change in Attitude Towards Crypto? – Crypto Connection 24 Apr, 2019

    […] Treasury, informed the Legislative Council that the purchase of mining equipment falls under the Trade Descriptions Ordinance. This move places restrictions on who can mine cryptocurrencies like bitcoin. But, does it also […]

  19. Pingback: Hong Kong Restricts Bitcoin Mining, Will it Lead to a Change in Attitude Towards Crypto? - Blockchain News Feed 24 Apr, 2019

    […] Treasury, informed the Legislative Council that the purchase of mining equipment falls under the Trade Descriptions Ordinance. This move places restrictions on who can mine cryptocurrencies like bitcoin. But, does it also […]

  20. Pingback: Hong Kong Restricts Bitcoin Mining, Will it Lead to a Change in Attitude Towards Crypto? – News.xj1.fr 24 Apr, 2019

    […] Treasury, informed the Legislative Council that the purchase of mining equipment falls under the Trade Descriptions Ordinance. This move places restrictions on who can mine cryptocurrencies like bitcoin. But, does it also […]

  21. Pingback: Hong Kong Restricts Bitcoin Mining, Will it Lead to a Change in Attitude Towards Crypto? - BitENews 24 Apr, 2019

    […] Treasury, informed the Legislative Council that the purchase of mining equipment falls under the Trade Descriptions Ordinance. This move places restrictions on who can mine cryptocurrencies like bitcoin. But, does it also […]

  22. Pingback: Hong Kong Restricts Bitcoin Mining, Will it Lead to a Change in Attitude Towards Crypto? – Cryto-Currency Offerings 24 Apr, 2019

    […] Treasury, informed the Legislative Council that the purchase of mining equipment falls under the Trade Descriptions Ordinance. This move places restrictions on who can mine cryptocurrencies like bitcoin. But, does it also […]

  23. Pingback: Hong Kong Restricts Bitcoin Mining, Will it Lead to a Change in Attitude Towards Crypto? | Daily Bitz 24 Apr, 2019

    […] Treasury, informed the Legislative Council that the purchase of mining equipment falls under the Trade Descriptions Ordinance. This move places restrictions on who can mine cryptocurrencies like bitcoin. But, does it also […]

  24. Pingback: Hong Kong Restricts Bitcoin Mining, Will it Lead to a Change in Attitude Towards Crypto? – Digital Coin Owner 24 Apr, 2019

    […] Treasury, informed the Legislative Council that the purchase of mining equipment falls under the Trade Descriptions Ordinance. This move places restrictions on who can mine cryptocurrencies like bitcoin. But, does it also […]

  25. Pingback: Hong Kong Restricts Bitcoin Mining, Will it Lead to a Change in Attitude Towards Crypto? | TheCryptoReport.com 24 Apr, 2019

    […] Treasury, informed the Legislative Council that the purchase of mining equipment falls under the Trade Descriptions Ordinance. This move places restrictions on who can mine cryptocurrencies like bitcoin. But, does it also […]

  26. Pingback: Hong Kong Restricts Bitcoin Mining, Will it Lead to a Change in Attitude Towards Crypto? – Qu5.Wiki 24 Apr, 2019

    […] Treasury, informed the Legislative Council that the purchase of mining equipment falls under the Trade Descriptions Ordinance. This move places restrictions on who can mine cryptocurrencies like bitcoin. But, does it also […]

  27. Pingback: Hong Kong Restricts Bitcoin Mining, Will it Lead to a Change in Attitude Towards Crypto? - Techterrene 24 Apr, 2019

    […] Treasury, informed the Legislative Council that the purchase of mining equipment falls under the Trade Descriptions Ordinance. This move places restrictions on who can mine cryptocurrencies like bitcoin. But, does it also […]

  28. Pingback: Hong Kong Restricts Bitcoin Mining, Will it Lead to a Change in Attitude Towards Crypto? - Coin Snippets 24 Apr, 2019

    […] Treasury, informed the Legislative Council that the purchase of mining equipment falls under the Trade Descriptions Ordinance. This move places restrictions on who can mine cryptocurrencies like bitcoin. But, does it also […]

  29. Pingback: Hong Kong Restricts Bitcoin Mining, Will it Lead to a Change in Attitude Towards Crypto? – cryptocurrency site 24 Apr, 2019

    […] Treasury, informed the Legislative Council that the purchase of mining equipment falls under the Trade Descriptions Ordinance. This move places restrictions on who can mine cryptocurrencies like bitcoin. But, does it also […]

  30. Pingback: Hong Kong Restricts Bitcoin Mining, Will it Lead to a Change in Attitude Towards Crypto? | Crypto News 24 Apr, 2019

    […] Treasury, informed the Legislative Council that the purchase of mining equipment falls under the Trade Descriptions Ordinance. This move places restrictions on who can mine cryptocurrencies like bitcoin. But, does it also […]

  31. Pingback: Hong Kong Restricts Bitcoin Mining, Will it Lead to a Change in Attitude Towards Crypto? - All Time Crypto 24 Apr, 2019

    […] Treasury, informed the Legislative Council that the purchase of mining equipment falls under the Trade Descriptions Ordinance. This move places restrictions on who can mine cryptocurrencies like bitcoin. But, does it also […]

  32. Pingback: Hong Kong Restricts Bitcoin Mining, Will it Lead to a Change in Attitude Towards Crypto? - Times of Cryptos 24 Apr, 2019

    […] Treasury, informed the Legislative Council that the purchase of mining equipment falls under the Trade Descriptions Ordinance. This move places restrictions on who can mine cryptocurrencies like bitcoin. But, does it also […]

  33. Pingback: Hong Kong Restricting Bitcoin mining - Cryptoline News 24 Apr, 2019

    […] Councils about Mining in Hong Kong and mining equipments. As these activities fall under the Trade Description of Ordinance. This Legislation is trying to put a restriction on who can mine cryptocurrencies like […]

  34. Pingback: Hong Kong Restricts Bitcoin Mining, Will it Lead to a Change in Attitude Towards Crypto? - The Crypto Guide 24 Apr, 2019

    […] Treasury, informed the Legislative Council that the purchase of mining equipment falls under the Trade Descriptions Ordinance. This move places restrictions on who can mine cryptocurrencies like bitcoin. But, does it also […]

  35. Pingback: Hong Kong Restricts Bitcoin Mining, Will it Lead to a Change in Attitude Towards Crypto? - 4 BTC News 25 Apr, 2019

    […] Treasury, informed the Legislative Council that the purchase of mining equipment falls under the Trade Descriptions Ordinance. This move places restrictions on who can mine cryptocurrencies like bitcoin. But, does it also […]

  36. Pingback: Hong Kong Restricts Bitcoin Mining, Will it Lead to a Change in Attitude Towards Crypto? - Complete Crypto Guide 25 Apr, 2019

    […] Treasury, informed the Legislative Council that the purchase of mining equipment falls under the Trade Descriptions Ordinance. This move places restrictions on who can mine cryptocurrencies like bitcoin. But, does it also […]

  37. Pingback: Hong Kong Restricts Bitcoin Mining, Will it Lead to a Change in Attitude Towards Crypto? - Bitcoin Mashup 25 Apr, 2019

    […] Treasury, informed the Legislative Council that the purchase of mining equipment falls under the Trade Descriptions Ordinance. This move places restrictions on who can mine cryptocurrencies like bitcoin. But, does it also […]

  38. Pingback: Hong Kong Restricts Bitcoin Mining, Will it Lead to a Change in Attitude Towards Crypto? - Chubweb 25 Apr, 2019

    […] Treasury, informed the Legislative Council that the purchase of mining equipment falls under the Trade Descriptions Ordinance. This move places restrictions on who can mine cryptocurrencies like bitcoin. But, does it also […]

  39. Pingback: Hong Kong Restricts Bitcoin Mining, Will it Lead to a Change in Attitude Towards Crypto? | CryptoDataDaily - Cryptocurrency News & Information 25 Apr, 2019

    […] Treasury, informed the Legislative Council that the purchase of mining equipment falls under the Trade Descriptions Ordinance. This move places restrictions on who can mine cryptocurrencies like bitcoin. But, does it also […]

  40. Pingback: Hong Kong Restricts Bitcoin Mining, Will it Lead to a Change in Attitude Towards Crypto? - New Coin Report 25 Apr, 2019

    […] Treasury, informed the Legislative Council that the purchase of mining equipment falls under the Trade Descriptions Ordinance. This move places restrictions on who can mine cryptocurrencies like bitcoin. But, does it also […]

  41. Pingback: Hong Kong Restricts Bitcoin Mining, Will it Lead to a Change in Attitude Towards Crypto? - CoinDeals 25 Apr, 2019

    […] Treasury, informed the Legislative Council that the purchase of mining equipment falls under the Trade Descriptions Ordinance. This move places restrictions on who can mine cryptocurrencies like bitcoin. But, does it also […]

  42. Pingback: Hong Kong Restricts Bitcoin Mining, Will it Lead to a Change in Attitude Towards Crypto? - CoinFans 25 Apr, 2019

    […] Treasury, informed the Legislative Council that the purchase of mining equipment falls under the Trade Descriptions Ordinance. This move places restrictions on who can mine cryptocurrencies like bitcoin. But, does it also […]

  43. Pingback: Гонконг ограничивает Биткоин майнинг, это приведет к изменению отношения к крипто? — BitCut 25 Apr, 2019

    […] покупка горно-шахтного оборудования подпадает под торговых описаний постановления. Этот шаг устанавливает ограничения относительно […]

  44. Pingback: Hong Kong Restricts Bitcoin Mining, Will it Lead to a Change in Attitude Towards Crypto? - The Coin Post 25 Apr, 2019

    […] Treasury, informed the Legislative Council that the purchase of mining equipment falls under the Trade Descriptions Ordinance. This move places restrictions on who can mine cryptocurrencies like bitcoin. But, does it also […]

  45. Pingback: Hong Kong Restricts Bitcoin Mining, Will it Lead to a Change in Attitude Towards Crypto? | 仮想通貨 上場(ジョウジョウ) 入口 25 Apr, 2019

    […] Treasury, informed the Legislative Council that the purchase of mining equipment falls under the Trade Descriptions Ordinance. This move places restrictions on who can mine cryptocurrencies like bitcoin. But, does it also […]

  46. Pingback: Hong Kong Restricts Bitcoin Mining, Will it Lead to a Change in Attitude Towards Crypto? | Bitcoinero Consulting Group, Ltd. 25 Apr, 2019

    […] Treasury, informed the Legislative Council that the purchase of mining equipment falls under the Trade Descriptions Ordinance. This move places restrictions on who can mine cryptocurrencies like bitcoin. But, does it also […]

  47. Pingback: Hong Kong Restricts Bitcoin Mining, Will it Lead to a Change in Attitude Towards Crypto? – News Domain | Cryptocoin Start 25 Apr, 2019

    […] Treasury, informed the Legislative Council that the purchase of mining equipment falls under the Trade Descriptions Ordinance. This move places restrictions on who can mine cryptocurrencies like bitcoin. But, does it also […]

  48. Pingback: Hong Kong Restricts Bitcoin Mining, Will it Lead to a Change in Attitude Towards Crypto? – news.kuaidiantou.vip 25 Apr, 2019

    […] Treasury, informed the Legislative Council that the purchase of mining equipment falls under the Trade Descriptions Ordinance. This move places restrictions on who can mine cryptocurrencies like bitcoin. But, does it also […]

  49. Pingback: News: HK seen regulating crypto mining as China mulls blanket ban – Blockchain Asset Review 25 Apr, 2019

    […] Hong Kong has apparently moved to regulate cryptocurrency mining, reports Hong Kong newspaper Harbor Times which cited a written response published by Secretary of Financial Services and the Treasury James […]

  50. Pingback: Hong Kong Restricts Bitcoin Mining, Will it Lead to a Change in Attitude Towards Crypto? - blocboard 26 Apr, 2019

    […] Treasury, informed the Legislative Council that the purchase of mining equipment falls under the Trade Descriptions Ordinance. This move places restrictions on who can mine cryptocurrencies like bitcoin. But, does it also […]