China’s Inner Mongolia Bans Crypto Mining is a FUD
China’s Inner Mongolia has been one of the main power source for China’s mining power. The massive electricity output makes it a prime location for China’s cryptocurrency mining. However, the Chinese government has announced a ban on crypto mining in the near future. This ban could be a massive blow to the already declining crypto market. Apparently, an adviser to the Chinese government has advocated that crypto mining is wasteful and harmful to the environment. China’s government, however, has not issued a statement on the crypto ban.
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The Chinese province of Inner Mongolia has banned crypto mining, according to a local news report. As of the date of the ban (July 16, 2018), all crypto mining activities would be halted. This would affect major crypto mining hardware producers like Bitmain, Canaan Creative, Ebang, and more. The report also mentioned that the ban would be implemented immediately, without giving any time for crypto mining businesses to relocate. The local governor’s office said that crypto mining farms were not compatible with the region’s hydro-power status and the massive electricity demand has led to the closure of local coal-fired power plants.
As China’s most developed region, Inner Mongolia represents where mining is most likely to continue to thrive. It also demonstrates how government regulation is beginning to harm the power of BCH. “All industries are encouraged to develop in accordance with the law and development trend,” the city’s mining industry association said in a statement. “We welcome capital investment in the mining industry, but we have to abide by the relevant laws and regulations.”. Read more about china crypto ban and let us know what you think.
Following China’s severe restrictions on bitcoin mining, we have learned that the government of the Inner Mongolia region has proposed eight new measures to slow down or phase out the mining of virtual currency. The Inner Mongolia region accounts for 8% of the total 70% of mining activity in China. More than 25,000 mining machines are stationed in Ordos, a small town near Inner Mongolia. The government has been planning to clean up bitcoin mines for two years, but has never done so. At the time, many bitcoin miners benefited from government policies… B. Big Data analytics offered to high-tech companies. These machines run continuously and pay $15.3 million in electricity bills throughout the year, but contribute virtually nothing to the local economy. In April this year, the Inner Mongolia Development and Reform Commission has already issued several regulations to help China meet its energy-saving goals. They even had a plan to stop all mining activities in the area through public participation. They gave the miners two months to resettle and use other sources of energy, such as hydropower, for mining. Some insiders in the Mongolia region have already said that most bitcoin miners have moved to other parts of China. The Department of Energy Commerce has just confirmed this, as it estimates that by 2021 there will be a 150% increase in bitcoin mining using hydroelectric power. Therefore, these actions by the local government are inconsistent with its previous claims that bitcoin mining is getting in the way of China’s goal of carbon neutrality. In 2019, the same commission did not exclude cryptocurrency mining in its final reorganization guidance and did not even impose restrictions. The local government has repeatedly tried to curb cryptocurrency mining activities, but has never made such a proposal to help China meet its 14th five-year plan for the economy. The whole process has been going on for more than two months, but the provincial government has now introduced legislation criminalizing the mining of virtual currency. Since this proposal has been circulating for some time, we cannot take it as evidence that fossil fuel power plants are still operating in the country. After the translation, here’s the full part, which includes eight bars:
All industrial parks, data centers and power plants that supply land and electricity to companies engaged in cryptocurrency mining are subject to heightened supervision in accordance with relevant laws, such as China’s Energy Conservation Law and Electricity Law. Any organization that intentionally conceals such activities, fails to stop them in a timely manner, or fails to conduct a thorough approval process will be held accountable under the regulations and laws of the Communist Party;
Government regulators must revoke all exemptions for large data centers or cloud computing companies involved in cryptocurrency mining, and they will be subject to appropriate action under the Energy Conservation Act ;
Communications or Internet companies engaged in cryptocurrency mining will have their telecommunications business licenses revoked by government regulators under the Telecommunications Ordinance of the People’s Republic of China and will be penalized accordingly;
As for all cybercafes mining cryptocurrencies, regulators should suspend and correct their activities ;
Any organization that provides private energy for mining cryptocurrencies without prior approval will be prosecuted under Chinese criminal law ;
Any company or person involved in the use of virtual currency for illegal activities, such as. The judicial authorities should deal with those involved in criminal activities, such as money laundering, in accordance with Chinese criminal law;
Any natural or legal person involved in the use of virtual currencies for fund-raising purposes should be subject to supervisory action in accordance with the rules on the prevention and handling of illicit funds ;
Any company or associated personnel involved in the mining of cryptocurrencies will be placed on China’s rogue list. Officials who have used their positions to support or protect mining activities in cryptocurrencies will be dealt with by the Communist Party’s relevant disciplinary committee.
Kartikeya Gutta, born and raised in India, is a cryptocurrency journalist and freelance writer for the website itsBlockchain. It covers various aspects of the industry through in-depth analysis and research. His passion for blockchain and the crypto-ecosystem is largely because he believes it can truly change the world and help millions of people.
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Sign up to be notified of the latest posts.Contrary to the recent reports out of China, crypto mining is not banned in China’s Inner Mongolia. In fact, according to various news outlets, mining is booming in the area. It’s not just about crypto mining, either. Traditional mining—the kind that extracts metals and minerals like coal and iron—is also booming in the region, as the government has banned mining in more traditional areas of China.. Read more about what is china fud and let us know what you think.
Frequently Asked Questions
Is China banning crypto mining?
The Chinese state is a hotbed of crypto mining. In fact, more than two-thirds of the world’s crypto mining takes place in China, an industry that makes up more than 40% of the country’s bitcoin mining. So it was no surprise when the news broke that the Chinese government would be looking to put a stop to crypto mining. The question was: how? And, of course, what does it mean for crypto trading? The inner Mongolia Autonomous Region, which has seen an economic boom due to the crypto industry, has come out with a statement banning all related businesses from operating in the region. The ban is scheduled to take effect starting July 1, 2018. The Region’s press release was posted on the official website of the regional government on June 5, 2018. The document reads, “The mining of bitcoin and litecoin and all digital currencies are banned in the city (sic) of Ordos.” The announcement follows a series of crackdowns on crypto mining activities in mainland China. The country’s top-three internet-finance regulator, the Leading Group of Internet Financial Risks Remediation, ordered all local governments in May
The Chinese government has a long record of crack downs on cryptocurrency-related activities, but it may be turning a corner. Earlier this week, the Inner Mongolia government announced a ban on all cryptocurrency mining activity. This was followed immediately by an announcement that the ban would be lifted. Could the government be softening its stance on cryptocurrency? While is true that the Chinese government is cracking down on illegal crypto mining, it’s not true that the government has banned all crypto mining in China. The government has banned the use of crypto for payments, but the ban on payments is separate from the ban on crypto mining.
How much of Bitcoin mining is in China?
This week, China’s Inner Mongolia became the latest region to ban cryptocurrency mining, joining more than a dozen others in a country where it is notoriously difficult to do business, unless you’re a massive mining operation, that is. In the last few years, China has been at the forefront of the bitcoin mining industry, largely because of how cheap the electricity is in the region. The fact that so much of Bitcoin mining is taking place in China has led to fears that the country could use its power to disrupt the cryptocurrency’s network. However, these fears were unfounded. China has every incentive to allow Bitcoin mining to continue. In fact, China’s Inner Mongolia region banned cryptocurrency mining as a “disorderly” industry that “devours” resources and contributes to the “desertification” of the Gobi desert. (Inner Mongolia borders the Gobi Desert, a desolate region that used to be swampland in China’s more humid past.) Although the ban has been lifted, it remains unclear how much cryptocurrency mining is taking place in the region.
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