China is considering imposing harsh penalties on state-owned firms that continue mining cryptocurrencies.
China is pressuring its own state-owned businesses to cease mining cryptocurrencies, and the government is considering harsh penalties on firms that continue, including higher energy expenses.
According to reports, Meng Wei, a spokesperson for the National Development and Reform Commission (NDRC), said at a press conference that as China’s top economic planner, the NDRC intends to regulate industrial-scale bitcoin mining and any involvement by state businesses in the activity. The NDRC, which is in charge of mining policymaking, has reportedly recently organized a special session on the subject. It also has increased the pressure on provinces and municipalities to investigate and clean up mining SOEs.
The Chinese government has taken a harsh stance against Bitcoin miners in 2021, blaming them for everything from energy waste to deadly coal mining accidents as it strives to fulfill its carbon-neutral goals.
The increased crackdown on miners in September, according to sources, was prompted by worries over the country’s power supplies for the winter season, which is one reason why authorities are said to have gone after those who tried to impersonate data researchers and storage facilities to continue mining the digital asset.
As reported by Cointelegraph, China dismissed a former Jiangxi government official for breaching national standards after he was discovered mining virtual currencies, according to the Central Commission for Discipline Inspection’s statement on Monday. According to preliminary findings, Xiao Yi was accused of abusing his power to promote and support businesses engaged in virtual currency mining activities against government rules, as well as taking bribes.
The latest Chinese government cryptocurrency crackdown has forced the burgeoning cryptocurrency industry, including Bitcoin (BTC) and crypto miners and exchanges, to relocate to countries with crypto-friendly regulations. A few of the firms that have left China to find a more accommodating regulator include Huobi, Binance, BTC.com, and Bitmain.