Chinese regulators are looking to heighten scrutiny on the cryptocurrency mining industry in Inner Mongolia.
Regulators in the Chinese autonomous province of Inner Mongolia have issued a notice demanding a clean-up of the province’s crypto mining enterprises.
Terms of notice
As local crypto outlet ChainNews reported on Sept. 14, five departments within Inner Mongolia have determined the need to rectify the mining industry within the province. The organizations named were the Development and Reform Commission, the Public Security Department, the Office of the Ministry of Industry, The Financial Office and the Big Data Bureau.
According to the report, the regulators’ position is that
“The virtual currency ‘mining’ industry belongs to the pseudo-financial innovation unrelated to the real economy, and should not be supported.”
Impact?
China’s regulatory approach to cryptocurrency mining has been somewhat inconsistent, leaving it unclear exactly what this recent notice will mean for miners operating in Inner Mongolia.
In a tweet reacting to ChainNews’ report, partner at Primitive Ventures and crypto commentator Dovey Wan wrote “I doubt this will have any impact.”
Chinese arithmetic
As of the end of May, China was reportedly responsible for 70% of global BTC mining. At the time, reports emerged that Chinese regulators were investigating illegal mining operations in Sichuan — a province responsible for 70% of China’s Bitcoin (BTC) mining thanks to the electricity generation of the Dadu River Basin.
Back in April, Cointelegraph reported that China’s National Development and Reform Commission was considering a ban on crypto mining throughout the country.
The tentative ban led to speculation that mining would be forced to leave the country or go underground — a troubling proposition for the country that houses the majority of the world’s hash power. To date, no such ban has entered into law.
Source: Cointelegraph https://cointelegraph.com/