Major bitcoin mining region in China sets tough penalties for cryptocurrency activities
May 26, 2021 @ 07:54 +03:00
China’s Inner Mongolia region has proposed punishments for companies and individuals involved in digital currency mining as it looks to further crack down on the practice. The move comes after Chinese Vice Premier Liu He said last week in a statement that it is necessary to “crack down on Bitcoin mining and trading behavior” to prevent the “transmission of individual risks to the social field.”
Those comments were seen as Beijing’s intentions to continue a four-year crackdown on bitcoin trading and other cryptocurrency-related activities. Inner Mongolia’s latest draft proposals aim to target companies such as telecommunications and internet firms engaging in virtual currency mining. The Inner Mongolia Development and Reform Commission said such companies could have their business licenses revoked if they are found to be involved in mining.
Cloud computing or data centers could have preferential government support policies they currently enjoy revoked. There are also harsh punishments for individuals involved in money laundering of fundraising via digital currencies.
Bitcoin mining consumes around 112.57 terrawatt-hours per year of energy, more than entire countries such as the Philippines and Chile, according to the Cambridge Bitcoin Electricity Consumption Index, a project of the University of Cambridge. China accounts for about 65% of the world’s bitcoin mining. Due to its cheap energy, Inner Mongolia accounts for around 8% globally, a greater share than the U.S.
Major bitcoin mining region in China sets tough penalties for cryptocurrency activities, CNBC, May 26