Inner Mongolia has declared tough penalties for individuals and firms involved in cryptocurrency mining. That comes after the China region’s plans for further clamp down on crypto dealings in the country. Keep in mind that different countries across the world launched crackdowns on mining activities over the past weeks. Such events aim to uncover illegal crypto deals consuming high power and safeguard online traders.
Last week, Liu He, a Chinese official, announced the necessity to launch crackdowns on trading behavior and BTC mining to avoid transmitting personal risks and crypto-threats to the social space.
It is undeniable that the remarks denoted Beijing’s aim to proceed with a 4-year clampdown on BTC trading and various crypto-related dealings.
In its latest proposal, Inner Mongolia targets firms like internet and telecommunication companies involved in crypto mining. According to the draft, any business associated with crypto mining accomplishments will risk its licenses since the activity might attract revocation.
Also, data and computing centers could risk their current government backup policies revoked.
Moreover, the new rules will consider individuals undertaking crypto activities as criminal.
The effort by Inner Mongolia to control the region’s crypto deals start in March. That was after the area broadcasted campaigns to prohibit crypto mining and ban existing projects. Why that move by leading BTC miner? Well, the whole thing was to prevent the increased power consumption in the area. Keep in mind that Inner Mongolia did not meet the power usage target by Beijing in 2019. That is why there was a need to formulate new tactics to reduce electricity consumption.
How does crypto consume energy? To obtain currencies such as Bitcoin, individuals use powerful computers to accomplish BTC transactions. The high-powered computers require a lot of electricity and thus the power usage concerns.
Remember, about 65% of BTC mining in the globe is from China. Inner Mongolia accounts for about 8% worldwide, a greater usage than the United States.
China started attacking crypto in 2017, closing local crypto exchanges, and banned ICOs. However, investors precede with their undertakings, although with crypto exchanges move abroad.
Keep in mind that China plans to go green by 2030