Hebei cracks down on cryptocurrency mining, trading
Published: Sep 14, 2021 10:48 PM
Representation of the Bitcoin cryptocurrency Illustration: VCG

Representation of the Bitcoin cryptocurrency Illustration: VCG

Local authorities in North China's Hebei Province have introduced special rectification for mining and trading of cryptocurrency, the latest step taken by Chinese authorities to regulate the sector.

Authorities including the police and cyberspace and financial regulators were jointly involved in the action, which requires careful checks on information, improvements to security measures and internal management systems, and prevention of illegal cryptocurrency mining. The requirements must be met by the end of this month, according to a post on the official WeChat account of Hebei's cyberspace regulator on Tuesday.

The action cited the huge amount of energy that the mining consumes, which runs counter to the country's goal of reaching its carbon peak in 2030 and carbon neutrality by 2060. Cryptocurrency trading can also disturb China's financial order, as much of the activity is in grey areas, said the post.

Starting from October, relevant departments in Hebei will jointly carry out normalized monitoring and if any illegal mining is discovered, those responsible will be held accountable.

Several areas across the nation have closed Bitcoin mining projects since May when the State Council, China's cabinet, vowed to clamp down on Bitcoin mining and trading as part of a series of measures to control financial risks.

Many Bitcoin mines in Southwest China's Sichuan Province - one of the country's largest cryptocurrency mining bases - were closed in June, following similar actions in other key mining hubs such as North China's Inner Mongolia Autonomous Region and Southwest China's Yunnan Province. 

Global Times