The government of the Inner Mongolia region is cracking down on cryptocurrency mining
Cryptocurrency mining activity in the Inner Mongolia region of China is set to take a beating after the region’s government rolled out eight measures to crack down on miners.
The recent proposal is scheduled to undergo a public consultation period which will run through June 1. The proposal’s details show that the laws are targeting facilities that use fossil fuels for mining, and they are also going after the power stations that provide the facilities with the power to operate. Cafes that use their computers for mining purposes are not left out as the proposal entails sanctions against them.
In addition to the strict rules against mining activities, the proposal also mentioned that individuals or entities choose to use digital assets for money laundering activities or raise funds with sanctions. The proposal also mentioned that any company or business that chooses to get involved with crypto mining would be added to the Social Credit Dishonesty List of China. With this, such a company or business would not be able to carry out various social activities, including having access to banking services and booking travel tickets by air or train.
China is aiming for carbon neutrality
The region took this latest move to effect the goal of China, which is to make sure that majority of the carbon produced is neutralized. The local government had already announced that a measure to rid the region of crypto mining activities would be undertaken in March. This latest proposal would see that the plan would be effected in the coming months with specific sanctioins for those who fail to comply. Since the proposal’s release, miners around the Inner Mongolia region have taken swift action.
Many miners are now relocating their mining businesses to other regions while others are going out of the country. The question on everyone’s lips is whether Sichuan and Yunan, provinces that are known for their mining prowess with hydroelectric power, would follow Inner Mongolia’s lead. A brief run-through of the proposal document shows that there would be an explicit legal sanctions for any power station that either openly or secretly provides power to miners according to the country’s Energy Conservation Law.
The second part of the proposal pointed out that any policy favoring power stations that provides power to miners would instantly be revoked. The third and fourth part says that Communications companies found in breach of the law would have their license seized while Cafe’s would be suspended by the overseeing agency. The fifth part of the proposal mentioned that Private power stations would also be dealt with according to the law. The last two parts talked about adding businesses to the Dishonesty List and specified sanctions for individuals.
Edward is a finance expert that experienced the 2007 stock market crash first hand. In 2010, he discovered Bitcoin and has been a cryptocurrency advocate ever since.