May 27, 2021
After barring the use and trading of cryptocurrency, Beijing has indicated that it will turn next to cryptocurrency mining.
China’s vice-premier Liu He last Friday said the government would clamp down on bitcoin mining and trading to achieve financial stability but stopped short of revealing specific policies. This week, Inner Mongolia, an autonomous region in northern China, issued draft guidelines on its plans to ban crypto mining, offering the first details about how authorities intend to execute this latest stage of the crypto crackdown.
Under the rules, big data centers and cloud computing firms will see preferential policies from the government withdrawn, while telecommunication companies, internet firms, and even cyber cafes will have their business license revoked or operation suspended if the entities are found to have engaged with crypto mining, according to a notice (link in Chinese) from Inner Mongolia’s Development and Reform Commission. Additionally, companies or individuals that are found to have used cryptocurrency to conduct money laundering will be handed over to the judicial authorities, while government employees who have either participated or facilitated the practice will face scrutiny from the country’s anti-corruption agencies.