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China's Inner Mongolia Publishes Details of Bitcoin Mining Ban

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Tue, 05/25/2021 - 14:57
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Alex Dovbnya
Inner Mongolia is seeking pubic comment on its eight enforcement measures against crypto mining
China's Inner Mongolia Publishes Details of Bitcoin Mining Ban
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China's Inner Mongolia region has published eight detailed enforcement measures against Bitcoin mining.

The Inner Mongolia Development and Reform Commission is currently seeking public comment on its draft proposal until June 1, meaning that the ban is yet to come into effect.

Data centers, self-sustaining power plants, and other entities that provide support for crypto mining without reporting it "will be held accountable." Telecommunications businesses and IT companies involved in mining will have their licenses revoked.

On top of that, if places like internet cafes provide support mining, they will have their business suspended by the authorities.

Unscrupulous actors who try to gain unauthorized access to electricity will face criminal charges.

Notably, all companies and private individuals involved in mining will be punished by being blacklisted under the country's controversial social credit system:

Relevant businesses and personnel involved in cryptocurrency mining will be included in the untrustworthy blacklist in accordance with relevant regulations; public officials who use their positions to participate in mining or provide convenience and protection for them will all be transferred to disciplinary inspection and supervision organs.

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More provinces could follow

The autonomous region—which is a major hub for coal-powered mining—originally announced that it would be shutting down crypto mining operations in March.

Dovey Wan of Primitive Ventures expects Xinjiang and Sichuan to follow suit, according to her latest tweet.

As reported by U.Today, China's Financial Stability and Development Committee, the country's leading financial regulator, called for a crackdown on Bitcoin mining last week.

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About the author

Alex Dovbnya (aka AlexMorris) is a cryptocurrency expert, trader and journalist with extensive experience of covering everything related to the burgeoning industry — from price analysis to Blockchain disruption. Alex authored more than 1,000 stories for U.Today, CryptoComes and other fintech media outlets. He’s particularly interested in regulatory trends around the globe that are shaping the future of digital assets, can be contacted at alex.dovbnya@u.today.