China to ban crypto mining in Inner Mongolia

The autonomous province of Inner Mongolia issued a “notice on checking and rectifying virtual currency mining”. As per a report on September 14th, the notice demands removal “of the province’s crypto mining enterprises”.

The five departments of Inner Mongolia includes

  1. The Financial Office,

  2. Development and Reform Commission,

  3. The Office of the Ministry of Industry,

  4. The Big Data Bureau,

  5. The Public Security Department.

The regulators affirmed that:

“The virtual currency ‘mining’ industry belongs to the pseudo-financial innovation unrelated to the real economy, and should not be supported.” 

Impact

Regulations under China’s cryptocurrency mining is somewhat vague and variable.

Crypto commentator, Dovey Wan tweeted the following in reaction to the report:


JUST IN h/t @ChainNewscom Regulatory bodies from Inner Mongolia will dedicate resources in restricting cryptocurrency mining within the province Xinjiang and Inner Mongolia are where most coal mining are based of. Tho I doubt this will have any impacthttps://t.co/LGmxpRwPeQ — Dovey Wan 🗝 🦖 (@DoveyWan) September 14, 2019

Contradictions

China’s National Development and Reform Commission plans on banning crypto mining throughout the country.

However, a May end report revealed that 70% of the global bitcoin mining comes from Sichuan, China. Dadu River Basin is responsible for electricity generation of crypto mining.

China holds the World’s largest hash power. Although, speculations emerged after Chinese authorities’ ban on crypto mining would either result in complete removal of mining or to go off-the-record. Contradictorily, no any law has entered till now.

#china #crypto #crytomining

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