China warned state-owned companies to cease mining cryptocurrency. China also warned companies not to violate the ban that they would be charged more electricity.
The latest warning is issued amid a crypto ban currently in place in East Asia. The government of China made all cryptocurrency trading illegal a few months back. In the following months, cryptocurrency miners and exchanges like Huobi or Binance moved to countries that have crypto-friendly laws.
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Chinese people continue to trade Bitcoin, in spite of the ban on crypto. Beijing authorities will not stop trying to block crypto usage. The Chinese government has also blamed miners for the country’s high energy consumption. Many of the large crypto mining operations were shut down or relocated in the heat from the crackdown. However, small mining operations continued to exist.
Beijing authorities have begun to track IP addresses in order to identify crypto-mining activities. Authorities in Zhejiang also began to investigate government workers who are illegally mining Bitcoin.
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Even with all of these efforts, energy consumption has not decreased significantly. Officials are now stepping up efforts to combat state-owned entities.
The authorities crack down on mining bitcoin at an industrial scale
Based on ReportsThe National Development and Reform Commission, (NDRC), plans to crack down on mining bitcoin at industrial scale. This includes all state enterprises that are involved in mining. A spokeswoman for the country’s chief economic planner, Meng Wei, said this at a press conference on Tuesday.
Her comments also highlighted the nonsustainable nature crypto mining. She stated that it uses a lot of energy and emits a lot of carbon.
BTC Trading at $60.6K Source: BTCUSD On TradingView.com| Source: BTCUSD on TradingView.com
The NDRC convened a meeting last week to address the issue of crypto ban defiance. He also called on municipalities and provincial governments to examine and take appropriate action for State-owned companies involved in mining.
China Dismisses Government Official For Mining
Beijing has been pursuing government officials to consolidate its crypto-friendly stance. China has removed from office a Jiangxi ex-government official.
Xiao Yi, a former vice-chairman of the Jiangxi Provincial Committee of the Chinese People’s Political Consultative Conference, was accused of abusing his power to promote and support enterprises against government policies. According to the Central Commission for Discipline Inspection, he engaged in cryptomining and took bribes.
Xiao is most high ranking Chinese official who has been punished for involvement in crypto mining.
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