Regulators in the Chinese autonomous province of Inner Mongolia have issued a notice demanding that crypto mining companies be refined in that province.
Notification conditions
As reported by the local media outlet specialized in crypto, ChainNews, on September 14, five departments of Inner Mongolia have determined the need to rectify the mining industry in the province. The organizations named were the Development and Reform Commission, the Department of Public Security, the Office of the Ministry of Industry, the Financial Office and the Office of Large Data.
According to the report, the position of regulators is that
"The" mining "virtual currency industry belongs to the pseudo-financial innovation unrelated to the real economy, and should not be supported."
Impact?
China's regulatory approach to cryptocurrency mining has been somewhat inconsistent, making it unclear what this recent notification will mean exactly for miners operating in Inner Mongolia.
In a tweet Reacting to the ChainNews report, Primitive Ventures partner and crypto commentator Dovey Wan wrote: "I doubt this has any impact."
Chinese arithmetic
It is presumed that by the end of May China was responsible for 70% of the world mining of BTC. At that time, reports emerged that Chinese regulators were investigating illegal mining operations in Sichuan, a province responsible for 70% of Bitcoin (BTC) mining in China, thanks to the generation of electricity from the Dadu river basin.
In April, Cointelegraph reported that the National Development and Reform Commission of China was considering banning crypto mining throughout the country.
The uncertain ban led to speculation that mining would be forced to leave the country or go underground, a worrying proposal for the country that hosts most of the world's hash power. To date, no such prohibition has been enacted.
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