China’s cryptocurrency crackdown sees Inner Mongolia call on public to report illegal mining operations
- ‘Public supervision’ complements Inner Mongolia’s push to reduce its energy intensity by 3 per cent in 2021 while capping its energy consumption growth at 1.9 per cent
- Mining cryptocurrency such as bitcoin requires massive amounts of computing power and energy, and that runs contrary to China’s long-term plans to achieve carbon neutrality
China’s northern region of Inner Mongolia is calling for more comprehensive reporting of cryptocurrency mining, signalling a strong determination to weed out power-consuming activities in the region.
The move comes as the country’s financial regulators have expressed growing concerns over the risks stemming from volatile cryptocurrencies, including bitcoin, ethereum and dogecoin. And Beijing’s growing distrust over these popular digital assets could pave the way for a broader clampdown on digital mining.
“This is to fully play the role of public supervision,” says a notice released this week by the region’s economic planning agency, which included telephone numbers and email addresses for people to report instances of digital currency being mined.
The agency listed four crackdown targets: mining enterprises; miners disguising themselves as data centres and accordingly receiving preferential treatment in tax, land and power tariffs; landlords housing mining activities; and those utilising power supplies illegally.