China’s Inner Mongolia escalates campaign against cryptocurrency mining

Photo by Andre Francois on Unsplash

China’s northern region of Inner Mongolia escalated a campaign against cryptocurrency mining on Tuesday, publishing draft rules to root out the business, days after Beijing vowed to crack down on bitcoin mining and trading.

The Inner Mongolia Development and Reform Commission said in the proposed rules that telecommunications companies and internet firms which are engaged in cryptomining will see their business licenses revoked by regulators.

It also said that authorities would introduce tougher energy-saving requirements for industrial parks, data centers and power plants that provide sites or electricity for miners.

Inner Mongolia had already announced in March that it would end all cryptocurrency mining projects as part of efforts to meet energy efficiency targets. The measures come amid China’s renewed efforts to curb speculative cryptocurrency trading

On Saturday, a State Council committee led by Chinese Vice Premier Liu He vowed to crack down on bitcoin mining and trading. Last week, three industry bodies banned financial and payment services to virtual currency trading, triggering a market sell-off.

Inner Mongolia said it would answer calls from the State Council to further clean up the crypto mining business in a bid to purify the big data industry and prevent financial risks.

Cryptomining is big business in China, accounting for more than half of the world’s crypto supply. But the process, which consumes a vast amount of energy, runs counter to Beijing’s goal toward carbon neutrality, some analysts say.

According to Tuesday’s draft rules, if big data centers and cloud computing firms take part in cryptomining, regulators would cancel any preferential policies they enjoy and force them out of Inner Mongolia’s multi-lateral power trading market.

Companies and individuals raising money using cryptocurrencies would be penalized under China’s anti-illegal fundraising rules, according to the draft measures.

Reuters

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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.