China Crypto Crackdown: Inner Mongolia authorities seize over 10K crypto mining rigs

The latest reports from the Inner Mongolia Autonomous Region Bayannaoer City Development and Reform Commission along with other authorities revealed that they have captured 10,100 unregistered mining machines. Furthermore, the authorities announced that Inner Mongolia has also shut down 45 virtual currency mining projects so far, which has theoretically saved 6.58 billion kilowatt-hours of electricity per year, i.e., 2 million tons of standard coal.

According to the authorities, the illegal warehouse was located at the Bayannaoer Economic Development Zone SME Pioneer Park. After investigation, the officials further informed that the confiscated mining rigs were foreign virtual currency mining clearing equipment, that amounted to 1,104 kWh on-site electricity consumption.

Inner Mongolia crypto crackdown Plan of action

The Inner Mongolia Autonomous Region has taken certain steps to curb illegal virtual currency businesses in the area. At the beginning of 2021, the Inner Mongolia authorities proposed suspension of any existing virtual currency mining projects, along with a ban on setting up new virtual currency mining farms. This was followed by also establishing a platform for complaints and reports on crypto mining behaviors.

Furthermore, the authorities also set up a framework to collaborate with several departments including, industry and information, public security, market supervision, and electric power and formulated. Inner Mongolia authorities assert that the joint system of normalized monitoring of electricity consumption data analysis and network flow monitoring has effectively promoted the rectification of virtual currency mining activities.

Crypto crackdown spread like wildfire

Amid the ongoing Chinese crypto crackdown, the suppression of crypto mining has taken the lead. Last week, the People’s Bank of China (PBoC) issued the updated crypto crackdown guidelines. The new set of guidelines highlighted three main points of concern around which the crypto crackdown will circle. One of these three was preventing crypto mining in the nation. The Chinese central bank deemed crypto illegal and claimed it to be a highly speculative market. Crypto crackdown has extended into the smaller, local provinces of China in the past month. With smaller districts adopting to the crackdown, the wave of centralization in China appears to be inevitable.