China’s Inner Mongolian Region Propose to End Bitcoin Mining by April to Meet Carbon Emission Goals

By Prashant Jha
Published March 1, 2021 Updated March 1, 2021
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Source: Aljazeera (LIU XINGZHE/CHINAFILE,Credit: EPA)

China’s Inner Mongolian Region Propose to End Bitcoin Mining by April to Meet Carbon Emission Goals

By Prashant Jha
Published March 1, 2021 Updated March 1, 2021

The Mongolian province of China has proposed a new regulation to ban Bitcoin & crypto mining along with steel, coke, and methanol production by end of April in order to meet the carbon emission goals. The decision came after the province failed to meet Beijing’s energy efficiency goals and drew heavy criticism from the government.

The draft bill read,

“(Inner Mongolia) will tighten its energy control measures and bear the targets throughout all economic and social aspects”

The bill also asserts on

Reasonable and orderly control the scale of data center construction, and it is strictly forbidden to build new virtual currency mining projects.

Mongolia is one of the inner provinces of China and a favorite for cryptocurrency miners because of the cheap electricity costs. It currently stands second in terms of crypto mining activity but many believe the tighter regulations around carbon emission would force many miners to move out of China.

Apart from Mongolia, the other three prominent crypto mining provinces Xinjiang, Sichuan and Yunnan had not issued any statements of the same tone. However, many industry insiders believe it would become more difficult for miners to set up stable mining operations in mainland China as the crackdown increases.

Increasing Crack Down on Crypto Mining Could Sprung Opportunities For Iran, Kazakhstan, and the US

China despite banning cryptocurrencies contribute more than 60% of mining hash power due to the availability of cheap clean energy in several provinces. China’s mining dominance has also been of great concern to many given the authoritarian state, and many US mining companies such as Riot, Marathon had started to come up over the past couple of years to compete with the Chinese mining industry and distribute Bitcoin mining hash power.

Countries such as Iran and Kazakhstan are also regulating crypto mining to lure mining farms to their countries by offering cheap electricity at subsidized prices.

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Disclaimer
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
About Author
Prashant Jha
1093 Articles
An engineering graduate, Prashant focuses on UK and Indian markets. As a crypto-journalist, his interests lie in blockchain technology adoption across emerging economies.

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