China targets crypto mining by state-owned companies and threatens punitive measures – Mining Bitcoin News


The Chinese authorities are continuing to crack down on activities related to cryptocurrencies that they consider illegal. The country’s top economic planning agency has made it clear that it intends to conduct large-scale cryptocurrency mining in government-operated industrial facilities.

State-owned companies mining cryptocurrency in China will face higher electricity bills

China National Development and Reform Commission (Development and Reform Commission) On Tuesday, it was announced that it plans to concentrate on “comprehensive rectification” of state-owned industrial enterprises involved in the extraction of digital currency.The initiative is ongoing Suppress Regarding encryption-related operations that are prohibited in the People’s Republic of China.

The economic planner cited concerns about energy waste related to crypto mining and financial activities related to cryptocurrency, reiterating that these are considered illegal in China. The committee emphasized that virtual currency has a different status from legal tender. CGTN, the international branch of the state broadcaster China Central Television, quoted the committee as saying.

The National Development and Reform Commission pointed out that the suspension of encrypted mining activities by state-owned enterprises will benefit the optimization of China’s industrial structure. The committee also believes that this will promote energy conservation and emission reduction, while helping the country to achieve carbon neutrality goals on schedule.

Digital coin minting consumes a lot of energy, the planning agency further stated. In order to prevent government-run entities from spending large amounts of electricity on it, those entities that now use subsidized electricity for crypto mining may face higher electricity bills in the future. National Development and Reform Commission spokesperson Meng Wei revealed at a press conference that the commission intends to study the possibility of imposing “punitive” tariffs as part of its preventive measures.

In early October, the National Development and Reform Commission proposed to add cryptocurrency mining to the country’s latest draft “market access negative list” jointly issued by the Ministry of Commerce. This move will prohibit investors from entering the industry. The 2020 version of the list includes 123 industries, such as Bitcoin.com News Report.

China banned cryptocurrency trading in 2017, but the authorities did not intervene in cryptocurrency mining until earlier this year. In May, the State Council and the Cabinet of Ministers in Beijing, suppress President Xi Jinping promised to achieve carbon neutrality in the next four years. In September, the People’s Bank of China Reiterate Its tough stance on cryptocurrencies.

With the signing of the agreement Infrastructure Act US President Joe Biden (Joe Biden) said that China’s National Development and Reform Commission’s latest announcement may have affected the cryptocurrency market, which involves crypto taxation. Lost billions Capitalization of U.S. dollars. Major cryptocurrencies fell on Tuesday, when the largest coin by market capitalization at the time briefly fell below $60,000. Bitcoin (Bitcoin) The transaction price at the time of writing is slightly higher than $60,500.

Do you want China to continue to crack down on cryptocurrency mining? Please let us know in the comments section below.

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