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China’s Inner Mongolia Plans Drive Out of Crypto Miners

Authorities have reportedly kickstarted efforts to stamp out cryptocurrency mining firms from China’s autonomous region of Inner Mongolia, according to a Sept 14 report by local news agency ChainNews

Five ministries and commissions in the region, including the Financial Office, the Office of the Ministry of Industry, Development and Reform Commission, the Big Data Bureau, and the Public Security Department reportedly issued a notice to rectify the position of crypto “mining” enterprises.

The government ministries had come to the conclusion that the activities of cryptocurrency miners were not positively affecting the region’s economy, labeling the activity as a pseudo-financial innovation. It is with these allegations in mind that the authorities mapped out two separate phases of action to drive out crypto miners.

The first reportedly involves an examination and self-report period scheduled to take place between September 3 to September 25, 2019. The findings will be conveyed to the region’s Ministry of Industry and Information Technology before September 30, ten days to the start of the second phase on October 10. 

Primarily, the second phase will see authorities form a team that will conduct an inspection, and after that, submit a report about the rectification by the end of the month.

China Vs. Crypto Miners

It is vital to note that this is not the first reported attempt to drive out crypto miners from a region in China or the country as a whole. 

In April, Coinfomania reported a supposed move by China’s National Development and Reform Commission (NDRC) to ban crypto mining even though we pointed out that it could take several years to happen, that is if the move also gains the needed momentum.

In the latest case too, Bitcoinist noted that the drive out currently involves only one region, while in fact, giant miners like Bitmain has reached an agreement with municipalities for cheaper electricity rate.

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