Inner Mongolia’s regulators in China’s autonomous province have indicated that they are going to begin drastically confining crypto mining in the area, after finding it a drag on the economy.

It has been reported that according to BlockPublisher, five departments of the Inner Mongolia administration will work together to organize in cryptocurrency mining.

Crypto Mining Evaluated Irrelevant to China’s Economic Betterment

The Financial Office, Development and Reform Commission, the Office of the Ministry of Industry, the Big Data Bureau, and the Public Security Department of Inner Mongolia have delivered a joint statement, announcing, “The virtual currency ‘mining’ industry belongs to the pseudo-financial innovation unrelated to the real economy, and should not be supported.”

However, the five agencies have made known plans to eliminate the crypto mining industry from Inner Mongolia in two phases, with the first having already started on September 3, 2019, and the second to begin on October 10, 2019. The governmental bodies are urging miners to terminate operations, but have yet to outline any punitive measures.

ALSO READ :  China's Central Bank To Start Trail To Restrict Large Scale Transactions

China’s Crypto Mining Unbelievably to End

Mining for cryptocurrencies such as Bitcoin is popular in China, with some reports estimating up to 70% of the world’s Bitcoin being mined in the nation. Of the amount of Bitcoin mined in China, 70% is believed to be mined in the domain of Sichuan alone, but Inner Mongolia is still among the top five areas for mining in the country.

However, the regulatory of crypto mining in China has led some, such as Dovey Wan, the Founder of Primitive Ventures believes that a crackdown will have limited effect.  A presumed 30,000 illegal mining machines are said to be operating in Sichuan.


 

Share This

Share This

Share this post with your friends!