China bitcoin: Inner Mongolia reinforces Beijing’s ban on mining with strict rules as more operators prepare to relocate offshore

  • The new rules, up for public comment until June 1, target industrial parks, data centres, telecoms companies, internet firms, and even cybercafes
  • Although creating and trading cryptocurrencies is illegal in China, authorities have until recently turned a blind eye to bitcoin miners

Coco Fengin Beijing
Representations of the virtual currencies bitcoin and Ethereum stand on a motherboard in this picture illustration taken May 20, 2021. Photo: Reuters

Northern China’s Inner Mongolia region has has escalated its endeavours to stamp out cryptocurrency mining with tough new draft rules that propose harsh punishments for anyone engaged in the practice, a move that will accelerate the relocation of mining outside China.

Targeting industrial parks, data centres, telecoms companies, internet firms, and even cybercafes, the draft rules promise to punish bitcoin miners or those providing resources to miners by banning them from the region’s power trading scheme, revoking business licenses, and even shutting their businesses down completely, according to a statement issued Tuesday by the region’s top economic planner.

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