China is putting pressure on its state-owned companies to stop cryptocurrency mining, and the government is considering severe penalties for companies that continue to mine, including rising energy costs.
Reportedly, Meng Wei, a spokesperson for the National Development and Reform Commission (NDRC), said at a press conference that as the main economic planner in China, the commission, as China’s chief economic planner, intends to regulate bitcoin mining on an industrial scale and any participation by owned enterprises. for the state. . in activity. Reportedly, the NDRC, which is responsible for developing mining policy, organized a special session on the issue. It also increased pressure on provinces and municipalities to investigate and clean up mining companies.
The Chinese government took a tough line against bitcoin miners in 2021, blaming them for everything from energy waste to fatal coal mining accidents as they struggle to confront their carbon footprint.
The uptick in attacks on miners in September was driven by concerns about the country’s electricity supply for the winter season, sources said, one of the reasons authorities are going after those who tried to pretend to be computer scientists and vaulters. Extract a digital resource. …
China has sacked the former governor of Jiangxi for violating national standards after he was found to be mining virtual currencies, the Central Commission for Discipline Inspection said in a statement on Monday. According to initial reports, Xiao Yi has been accused of abusing his powers to promote and support companies that conduct virtual currency mining operations in violation of government regulations, as well as accepting bribes.
The recent collapse of the Chinese government’s cryptocurrency has forced the booming digital currency industry, including Bitcoin (BTC), miners and exchanges, to move to countries with crypto-friendly regulations. Some of the companies that have left China in search of a more flexible regulator include Huobi, Binance, BTC.com, and Bitmain.