China is urging state-owned enterprises to stop mining cryptocurrencies. And the government is proposing punitive penalties, such as higher energy costs, for those who do so.
According to sources, Meng Wei, a spokeswoman for China’s National Development and Reform Commission (NDRC), stated during a press conference that the NDRC aims to control industrial-scale bitcoin mining and any engagement by state-owned enterprises in the activity. According to reports, the NDRC, which is in charge of mining policymaking, recently held a special session on the topic. It also put more on provinces and municipalities to look into and clean up mining SOEs.
In order to meet its carbon-neutral targets, the Chinese government has taken a hard line on Bitcoin miners in 2021, accusing them of anything from energy waste to lethal coal mining accidents.
According to insiders, concerns over the country’s electricity supply for the winter season motivated the enhanced crackdown on miners in September. One reason authorities are likely to have pursued people who sought to mimic data researchers and storage facilities. In order to continue mining the digital asset is because of this.
Chinese crypto crackdown boomed cryptocurrency sector
According to a statement released on Monday by China’s Central Commission for Discipline Inspection, a former Jiangxi government official faced elimination for violating national standards after accused of mining virtual currency. According to preliminary findings, Xiao Yi was accused of misusing his position of authority. To promote and encourage firms engaged in illegal virtual currency mining, as well as accepting bribes.
The new Chinese government cryptocurrency crackdown has compelled the booming cryptocurrency sector. Which includes Bitcoin (BTC), crypto miners, and exchanges, to migrate to nations with crypto-friendly policies. Huobi, Binance, BTC.com, and Bitmain are just a few of the companies that have departed China. In search of a more sympathetic regulator.