Major Bitcoin mining hub in China issues harsh crackdown measures on cryptocurrency activities
Published: May 25, 2021 11:48 PM
bitcoin Photo:IC


North China's Inner Mongolia Autonomous Region, a major hub for Bitcoin mining, issued on Tuesday night what appears to be the harshest crackdown measures yet on mining activities with revocation of licenses for telecom and internet companies that engage in cryptocurrency mining activities. 

Following recent warnings and actions against cryptocurrency mining, the regional development and reform commission issued eight draft measures against mining activities in the region. 

Among the harsh crackdown measures proposed, is possible revocation of licenses for telecom and internet companies that engage in mining activities. Companies would also be held accountable with rigor, according to the draft measures. 

Big data centers and cloud computing firms could also face cancellation of policy support by the government if they engage in cryptocurrency mining activities. The draft measures also include severe punishment for entities and individuals engaging in cryptocurrency mining activities as well as money laundering through cryptocurrencies, including possible criminal charges.  

The commission is going through a public consultation of the draft measures that will continue until June 1. The draft measures are the latest step in a crackdown by authorities in Inner Mongolia on mining activities, including strengthening the enforcement of the ban on cryptocurrency mining. It is also part of China's nationwide crackdown campaign on cryptocurrencies that have impacted global prices. 

Bitcoin prices have gone on a crazy roller roster ride over the past week amid consecutive warnings from Chinese industry associations and the country's top financial authority.

The cryptocurrency took a beating on May 19, diving to a low close to $30,000 from its intraday high of over $43,500, one day after three Chinese industry associations panned out a joint announcement to ban financial and payment institutions from dealing with cryptocurrency businesses.

The State Council Financial Stability and Development Committee reiterated the efforts to crackdown on Bitcoin mining and trading during a meeting on Friday, dealing another blow to those betting on a rebound.

Bitcoin now hovers around the $36,500-$39,500 range.