Technology

Chinese Region To Institute Ban On Crypto Mining

Reports surfacing from China suggest that crypto miners in the region of Inner Mongolia are facing a possible crackdown on their activities in the near future.

Inner Mongolia is an autonomous region in China and crypto news outlet, ChainNews reports that authorities in the region are looking at curbing Bitcoin mining and any other similar activity in their jurisdiction.

In the article, which was brought to light by Dovey Wan, a leading venture capitalist, it is said that authorities in Inner Mongolia are planning a crackdown on businesses that engage in Bitcoin mining, cloud computing, and any other businesses that involve large data centers, or massive computing power and devices.

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A negative perception of cryptocurrency

It appears that authorities in Inner Mongolia have developed a negative attitude towards cryptocurrency. The article said that documents from the local authorities state that cryptocurrency mining has no bearing on the real economy, and hence, it should be stopped in Inner Mongolia.

Various government departments in the autonomous region are expected to participate in the crackdown.

Some of the departments include the Public Security Department, the Financial Office, the Autonomous Region Development and Reform Commission, and the Big Data Bureau.

The number of departments involved in this move against crypto mining is an indication of the importance the authorities in Inner Mongolia have placed on the matter.

It is likely that crypto related businesses in the region will suffer as a result of the upcoming crackdown which is scheduled for the next two months. Traders who purchase Bitcoin online will also feel the effects of the crackdown on crypto miners.

In the grand scheme of things, Wan believes that the crackdown will have little effect on the cryptocurrency mining industry in China.

The majority of Bitcoin mining farms in China are situated in the Sichuan river region where they use cheap hydroelectric power for their activities.

Decline of the crypto industry in China

The move by authorities in Inner Mongolia may be indicative of the new stance held by the Chinese government towards the crypto industry.

China has long been one of the leading countries in terms of cryptocurrency, and the country holds the most Bitcoin mining power in the world. However, recent events suggest that this position may be well on its way to change.

The Chinese economic planning commission recently released a proposal in which they label Bitcoin mining as dangerous. These sentiments could spell doom for the crypto industry as it is likely that the Chinese government will soon implement regulations that restrict crypto activity.

The post Chinese Region To Institute Ban On Crypto Mining appeared first on InsideBitcoins.com.

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