Chinese Province Proposes to Blacklist Illegal Bitcoin Miners

Tuesday, 25/05/2021 | 17:33 GMT by Felipe Erazo
  • The ruling punishes internet cafes and providers who are engaged in crypto-related mining activities.
Chinese Province Proposes to Blacklist Illegal Bitcoin Miners
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The Chinese provincial government of Inner Mongolia has issued a proposal to blacklist the national social credit system of everyone who violates new rulings on Bitcoin mining. Following China’s crackdown on crypto mining, the province wants to punish illegal miners with limited access to financial products and even restrictions on foreign travel, reported local media outlet Weixin.

According to the announcement made during the 51st meeting of the Financial Stability Development Committee of the State Council in Inner Mongolia, the blacklist seeks to punish internet providers and internet cafes who favor illegal Bitcoin mining within the province. The proposal is named “Inner Mongolia Autonomous Region Development and Reform Commission on Resolutely Cracking Down on and Punishment of Virtual Currency.”

“For entities such as virtual currency ‘mining’ projects that privately access power sources without approval, under the Criminal Law of the People’s Republic of China and other relevant regulations, their illegal electricity theft shall be transferred to the judicial organs for handling per the law,” an excerpt of the proposal says.

Additionally, the measure aims to crack down on what the government named 'illegal fundraising' on mining projects and banning public officials in Inner Mongolia from participating directly or indirectly in cryptocurrency mining-related activities.

China Harsh Tone on Crypto Mining

As Finance Magnates has been reporting over the last few days, Chinese miners have been struggling to figure out how to keep their operations alive in the long term. Beijing’s latest major crackdown on Cryptocurrencies occurred in 2017 when the government banned exchanges from running their operations within the country and prohibited initial coin offerings (ICOs).

However, the latest reports suggest a stricter stance from the Chinese government towards crypto mining amid alleged concerns on energy supply issues due to such activities. Such a harsh tone has led mining firms such as Huobi Mall and BTC.TOP to halt their operations in China.

Globally, China accounts for almost 70% of the global Hash Rate , becoming a heavyweight in the crypto mining sphere.

The Chinese provincial government of Inner Mongolia has issued a proposal to blacklist the national social credit system of everyone who violates new rulings on Bitcoin mining. Following China’s crackdown on crypto mining, the province wants to punish illegal miners with limited access to financial products and even restrictions on foreign travel, reported local media outlet Weixin.

According to the announcement made during the 51st meeting of the Financial Stability Development Committee of the State Council in Inner Mongolia, the blacklist seeks to punish internet providers and internet cafes who favor illegal Bitcoin mining within the province. The proposal is named “Inner Mongolia Autonomous Region Development and Reform Commission on Resolutely Cracking Down on and Punishment of Virtual Currency.”

“For entities such as virtual currency ‘mining’ projects that privately access power sources without approval, under the Criminal Law of the People’s Republic of China and other relevant regulations, their illegal electricity theft shall be transferred to the judicial organs for handling per the law,” an excerpt of the proposal says.

Additionally, the measure aims to crack down on what the government named 'illegal fundraising' on mining projects and banning public officials in Inner Mongolia from participating directly or indirectly in cryptocurrency mining-related activities.

China Harsh Tone on Crypto Mining

As Finance Magnates has been reporting over the last few days, Chinese miners have been struggling to figure out how to keep their operations alive in the long term. Beijing’s latest major crackdown on Cryptocurrencies occurred in 2017 when the government banned exchanges from running their operations within the country and prohibited initial coin offerings (ICOs).

However, the latest reports suggest a stricter stance from the Chinese government towards crypto mining amid alleged concerns on energy supply issues due to such activities. Such a harsh tone has led mining firms such as Huobi Mall and BTC.TOP to halt their operations in China.

Globally, China accounts for almost 70% of the global Hash Rate , becoming a heavyweight in the crypto mining sphere.

About the Author: Felipe Erazo
Felipe Erazo
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Felipe earned a degree in journalism at the University of Chile with the highest honour in the overall ranking, and he also holds a Bachelor of Arts in Social Communication. In addition, he has been working as a freelance writer and Forex/crypto analyst, with experience gained from several forex broker firms and crypto-related media outlets around the world. He has been involved in the world of online forex trading since 2010 and in the crypto sphere since 2015.

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