China is going to consider levying strict penalties on state-owned entities that continue to mine cryptocurrencies.
China is forcing its own state-owned companies to stop mining cryptocurrencies, and the government is taking into consideration strict penalties, such as higher energy charges, for firms that continue.
According to reports, Meng Wei, a spokesman for China's National Development and Reform Commission (NDRC), stated at a press conference that the NDRC, as the country's top economic planner, seeks to regulate industrial-scale Bitcoin (BTC) mining and any engagement by state-owned enterprises in the activity. The NDRC, which is in charge of mining policymaking, is said to have lately organised a special session on the matter.
It has also accelerated pressure on territories and municipalities to examine and wipe up state-owned mining activities.
In 2021, the Chinese government has taken a tough viewpoint against Bitcoin miners, blaming them for everything from energy waste to devastating coal mining accidents as the nation needs to achieve its carbon-neutral targets.
According to sources, the enhanced crackdown on miners in September was stimulated by concerns about the country's power supplies for the winter season, which is yet another reason why authorities are said to have gone after those who attempted to impersonate data researchers and storage facilities to resume mining the digital asset.
According to a statement issued by China's Central Commission for Discipline Inspection on Monday, a former Jiangxi government official was terminated for violating national standards after he was found mining digital currencies. According to preliminary findings, Xiao Yi was alleged of misusing his position to encourage and support businesses involved in illegal digital currency mining activities, and also accepting bribes.
The most recent Chinese government cryptocurrency crackdown has compelled the rapidly growing cryptocurrency industry, including Bitcoin and cryptocurrency miners and exchanges, to resettle to countries with crypto-friendly regulations.
Huobi, Binance, BTC.com, and Bitmain are among the companies that have left China in seek of a more adaptable regulator.