China Targets Crypto Mining at State-Owned Enterprises, Threatens Punitive Measures – Mining Bitcoin News

China continues to take action against illegal activity linked to crypto currencies. The country’s top economic planning body has clearly indicated it intends to go after large-scale cryptocurrency mining taking place at government-operated industrial facilities.

Higher Electricity Costs for Chinese State Mining Firms

China’s National Development and Reform Commission (NDRC) announced Tuesday it plans to concentrate on the “comprehensive rectification” of state-run industrial enterprises involved in the extraction of digital currencies. The initiative is part of an ongoing crackdown on crypto-related operations that are banned in the People’s Republic.

According to the economic planner, concerns were raised about crypto mining and related financial activities. These are considered illegal in China. According to CGTN, an international broadcaster of CCTV, virtual currency doesn’t have the same status and legal currency.

The NDRC noted that the disruption of crypto mining activities at state-owned companies will facilitate the optimization of China’s industrial structure. This will help China achieve its carbon neutrality targets on time, according to the commission.

The planning body also noted that digital coin mining requires a lot more energy. To discourage governments from spending large amounts of energy on crypto mining, the government may increase electricity rates for those who are currently using subsidised electricity. Meng Wei, a spokesperson of the NDRC, revealed at a press conference that the commission intends to study the possibility of levying “punitive” tariffs as part of its preventive measures.

In early October, the National Development and Reform Commission proposed to add cryptocurrency mining to the country’s latest draft of the “Negative List for Market Access,” jointly released with the Chinese Ministry of Commerce. This would mean that the entire industry is now closed to potential investors. According to News, the 2020 edition includes 123 industries.

China had banned crypto trading in 2017, but the authorities were not able to interfere with cryptocurrency mining until much later this year. In May, the State Council, the cabinet of ministers in Beijing, clamped down on the sector following President Xi Jinping’s pledge for the country to achieve carbon neutrality in the next four decades. In September, the People’s Bank of China reiterated its hardline stance on cryptocurrencies.

The latest announcement from the NDRC China, concerning crypto taxation and the U.S. President Joe Biden’s infrastructure bill, likely influenced the cryptocurrency markets that saw billions in capitalization drop. The market cap of the most valuable cryptocurrency fell to $60,000. Bitcoin (BTC), which trades at just over $60,000.500 as of this writing

What do you think of China’s continued crackdown on cryptocurrency miners? Comment below to let us know your thoughts.

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