The authorities of the Autonomous region of Inner Mongolia in China issued a notice, whereby local mining companies are obliged to cease their activities. This was reported cryptoguru ChainNews. It seems, Inner Mongolia decided to follow in the footsteps of the authorities.
Remember, China has long held status as the world’s leader in mining cryptocurrency, since most of the miners sought to take advantage of very cheap electricity. One of the most active regions in mining industry was Inner Mongolia. Rich in coal reserves, the territory was given the opportunity to make cheap energy. Other regions popular with miners are Sichuan and Yunnan, especially in the rainy season, when the region switches to the hydropower.
Although this has risks: Chinese miners forced to suspend production of Bitcoin. What is the reason?
Now from Inner Mongolia received information about the ban on the mining of cryptocurrencies. Five local departments, including Financial management, the Ministry of industry, Development and Reform, Bureau of Bigdata and the Public Security Department issued a Memorandum stating that mining cryptocurrency does not contribute to the development of the local economy. Moreover, the sector of mining called pseudophilosophy innovation.
The authorities decided to break any relations with cryptainerle, despite the fact that some companies had managed to reach exclusive agreements with municipalities. For example, the largest mining Corporation Bitmain have an agreement on cheaper power with the authorities of the city district of Ordos in the Autonomous region.
The decision of the departments of Inner Mongolia as a whole reflects the General attitude of the Chinese government to mining. In April of this year, we wrote that the national Commission for development and reforms of China (NDRC) has submitted a plan to eliminate the industry of the mining of cryptocurrencies in the country. And there is a high probability that the process begins with Inner Mongolia.
The miners will kick in two stages
According to reports, the strategy of restricting the activities of cryptocurrency miners will be divided into two stages. In the first phase, from 3 to 25 September, 2019 city in the region will have to analyze the situation and to report to the authorities. They commit to provide feedback to the Ministry of industry and information technology of the region until September 30. The second round starts on October 10 and will continue until the end of the month. Departments of Inner Mongolia will form a joint inspection team that will oversee and report on the measures to improve the situation.
Would serious influence the decision of Inner Mongolia on the mining industry in China, time will tell.
The situation was commented Gleb Shirshov, Director of operations for a mining-pool 2Miners.
Even if mining Bitcoin suddenly are commonly banned in China, it is hard to believe that miners are completely gone and will no longer work on gray or black scheme. After all, mining the cryptocurrency at a low cost of electricity is an incredibly profitable business. Just don’t break up.
What do you think, will have such bans on the mining industry and, more importantly, on the price of Bitcoin and other cryptocurrencies? Share your thoughts in our cryptodata miners and hontarov.
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