Crypto

China Sends State-owned Enterprises Strong Warning Over Bitcoin Mining

China Sends State-owned Enterprises Strong Warning Over Bitcoin Mining

China is putting pressure on its enterprises to stop mining cryptocurrency, and the government is considering imposing penalties, such as higher energy costs, on companies that continue to do so.

“As China’s top economic planner, the NDRC wants to oversee industrial-scale Bitcoin (BTC) mining and any involvement by state firms in the activity,” stated Mr. Meng Wei, a spokesman for the National Development and Reform Commission (NDRC) at a news conference.

According to reports, the NDRC, which is in charge of mining policymaking, recently held a special session on the subject. It also put more on provinces and municipalities to investigate and clean up state-owned mining operations.

In this year, 2021, the Chinese government has taken a harsh stance against Bitcoin miners, criticizing them for anything from energy waste to deadly local mining accidents as the country strives to meet its carbon-neutral goals.

According to sources, the government’s increased crackdown on Bitcoin miners in September was prompted by concerns about the country’s power supplies for the winter season, which is one reason why those who tried to impersonate data researchers and strong facilities to continue mining the digital asset were targeted.

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According to a statement released by China’s Central Commission For Discipline Inspection on Monday, an ex-Jiangxi government official was fired for breaking national standards after cryptocurrency mining was revealed. Xiao Yi was accused of abusing his position of power to elevate and support enterprises engaged in cryptocurrency mining activities against government orders, as well as accepting bribes, according to the results.

The recent China cryptocurrency crackdown has caused the booming cryptocurrency industry, including Bitcoin and Crypto miners and exchanges, to flee to nations where the government has not imposed similar restrictions.

Houbi, Binance, BTC.com, and Bitmain are among the companies that have left China for a more accommodating regulator

The Author

Samuel Adeshina

Samuel is a financial reporter whose interests include blockchain, market, business, insurance, and Crypto to provide relevant information to all interested.