By Crypto Miners in Inner Mongolia, Chinese region are facing a possible crackdown to curb crypto mining and similar activities in the industry according to a report released on September 14. The crackdown is scheduled to run for two months.
As an autonomous region in China, Inner Mongolia is likely to face a ban on Bitcoin mining and other similar activities such as cloud mining as anticipated by authorities in the area. The crackdown will also target businesses that involve the use of large data centres and/or massive computing power and devices.
The Perception of Cryptocurrency in Mongolia
Authorities in Inner Mongolia seem to have a negative attitude towards cryptocurrency and its operations. In their opinion, cryptocurrency bears “no real value” to the economy. For this reason, some government departments are expected to participate in the crackdown.
The departments will include Public Security Department, Big Data Bureau, Autonomous Region Development and Reform Commission as well as the Office of the Public Security Department. Considering the number of departments supporting the crackdown, it is a great indication of the perception authorities in Inner Mongolia have towards the crypto industry.
Crackdown Objective
The main objective for the crackdown is to regulate mining operations within Inner Mongolia. To help meet this objective, there is a two-phase process. Phase 1 is ongoing with the expectation to run through to September 25. This phase constitutes self-examination and correction requiring mining operations to report to the Ministry of Industry and Information Technology before September 30.
On the other hand, the second phase commences on October 10, running to the end of the month. This phase will be dedicated to direct supervision and rectifying of the industry.
According to a tweet by Dovey Wan, a crypto commentator, the mentioned regulatory bodies from Inner Mongolia will dedicate resources to restrict cryptocurrency mining within the province. Wan adds that there will be minimal impact on the crypto mining industry in China. He adds that the many mining farms are situated along the Sichuan river region thus the use of cheap hydroelectric power. The fight against cryptocurrency in China has been an ongoing war. In early April, China announced a ban on all ICO as well as crypto exchanges. Inner Mongolia is one of the authorities start points to ban crypto mining.
Recently, The Chamber of Commerce, Industries, Mines and Agriculture reported that on Sunday 21st July, an economic commission in the Iranian government approved the mining of cryptocurrencies.
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