Local authorities in China crack down on virtual currency mining
Published: Nov 18, 2021 12:03 PM
Bitcoin, a type of cryptocurrency Illustration: VCG

Bitcoin, a type of cryptocurrency Illustration: VCG

Local authorities across China, including Southwest China's Guizhou Province and Sichuan Province, are intensifying regulation on local cryptocurrency mining, coming on the heels of China's top economic planner announcing a new policy aimed at tackling industrial-scale Bitcoin mining and involved enterprises in a bid to cut electricity use and carbon dioxide emissions. 

Energy-intensive crypto-currency mining is standing in the way of the green transition and China's target of carbon neutrality. The recent measures show the unwavering determination of Chinese authorities to clear away obstacles to green development, analysts said.

Authorities in Guiyang, capital city of Guizhou, established a hotline and contact address for residents to make confidential reports on local mining activities and involved enterprises, according to an official announcement from the government website. 

Residents in Guiyang can report mining enterprises disguised in the form of data centers that enjoy preferential policies in terms of taxes, land use and electricity rates, and other hidden forms of mining enterprises such as internet cafes, according to the announcement.

Enterprises and individuals engaged in virtual currency mining or providing space rental and other services to mining activities or obtaining electricity through illegal means for virtual mining, can also be reported to the responsible authorities. 

The neighboring Sichuan provincial government held a meeting on Wednesday, which discussed the work process for monitoring and regulating mining activities in the province and deployed tasks for the next phase, said its official website. 

The National Development and Reform Commission (NDRC) said on Tuesday that it will further strengthen the regulation and monitoring of industrial-scale mining and involved state-owned companies, while increasing the penalties for enterprises that attempt to access residential electricity rates while operating crypto-currency mining activities, in a bid to achieve carbon neutrality. 

Global Times