The Hebei provincial administration in China has adopted a package of special measures to combat illegal cryptocurrency mining, according to local media.
On September 14th, China’s Hebei Province stated that it would start checking and cracking down on cryptocurrency mining from October. https://t.co/zij82HQiKR
— Wu Blockchain (@WuBlockchain) September 14, 2021
Under government decisions, the relevant agencies must by 30 September 2021 examine existing “information enterprises” for involvement in the mining of digital assets.
Construction of such centers should not proceed without proper registration. Existing enterprises must submit documents by 30 September.
From October, the cybersecurity, information technology and financial oversight departments will begin joint monitoring.
“For detecting illegal mining using the computing power of an information system, those responsible and persons should be held to account; Internet access should be suspended until the violations are remedied,” the authorities’ statement quotes.
It emphasises that mining consumes vast amounts of energy and runs counter to the country’s goals of carbon neutrality.
“The exchange and transactions of virtual currencies seriously undermine China’s financial order and carry high risks, largely linked to black- and grey-market products. The spread and use of assets negatively affect economic and social development, directly threatening national security,” the statement says.
Earlier, prohibitive measures against the digital currency mining industry were taken by the authorities of Qinghai, Xinjiang, Sichuan, Inner Mongolia and Yunnan.
According to data from данным Cambridge Centre for Alternative Finance (CCAF), in April 2021 miners from these regions generated 85.5% of Bitcoin’s hash rate in the country. The corresponding figure for Hebei stood at 0.56%.
As reported earlier, repression against mining in China intensified after the May statement by Liu He, Vice Premier of the State Council.
The bans have led to a mass exodus of participants in the industry from China. However, according to CCAF, the country had already lost its dominance in Bitcoin mining as early as March.
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