Crypto mining might soon be restricted in inner Mongolia as ministries have issued a notice to rectify the crypto mining space.
Ministeries Consider Virtual Currencies “Unrelated” To Real Economy
Per the notice issued by the Autonomous Region Development and Reform Commission crypto mining, cloud computing, big data, IDC and data centers in inner Mongolia will be under the radar of the ministries. Inner Mongolia is an autonomous region of Northern China. Its border includes most of the length of China’s border along with Mongolia.
The notice further mentions National Financial Work Conference and the leaders of the autonomous region consider that the virtual currency “mining” industry belongs to the pseudo-financial innovation and is unrelated to the real economy, and should not be supported.
A twitter user with handle “Yang Venture” suggests that the move makes complete sense as the crypto miners wish to reap high profits and hide their profits.
The inspection has further been divided into two phases. The first phase started on the 2nd of September and will last until the 25th of September. This phase will be the self-examination and self-correction phase of the various cities. Subsequently, feedback to the Ministry of Industry and Information Technology will be sent before September 30th.
The second phase will begin from the 10th of October and will last until the 30th of October. This phase will be the supervision and rectification phase. During the supervision and rectification phase, the relevant departments of the autonomous region will form a joint inspection team. The team will thus carry an analysis of activities in the region and form a report on how to rectify the problem.
Illicit Crypto Mining in Hunan as per authorities
Recently, Police in Hengyang, a city of south-central China’s Hunan Province arrested fifteen men on grounds of stealing electricity from Internet cafes to mine cryptocurrencies. Furthermore, 9000 computer administrators are said to be involved in the scam. The local police further revealed that many cafes were involved and were remotely controlled for crypto mining.
It is to be noted that inner Mongolia along with Sichuan and Xinjiang in China is among the rising crypto mining hubs in the world and recently it was chosen for Bitmain’s $60 million investment.
With crypto mining coming under the watchful eyes of the authorities, will the miners continue to mine crypto and shift base or watch out for new avenues? Let us know, what you think?