China has yet again reiterated its determination to crack down on the cryptocurrency mining sector and revealed today that authorities will focus on state-owned entities engaging in virtual currency mining.
Fast facts
- Wei Meng, a spokesperson of the National Development and Reform Commission (NDRC), the country’s top economic planner, said at a press briefing today that virtual currency-related activities are illegal, and mining can do huge harm to the nation’s carbon-neutrality goals.
- As part of the next step of the clampdown, the authorities will focus on raiding industrial clustered mining activities and those carried out by state-owned entities, Meng said. If an entity is found to have participated in mining crypto, it could be subject to punitive electricity charges for future operations, according to Meng.
- Just over the weekend, the country’s anti-corruption watchdog announced that Xiao Yi, a former vice chairman of the Jiangxi provincial committee of the people’s political consultative conference, has been removed from office and expelled from the party, as he was found to introduce and support cryptocurrency mining activities.
- The NDRC last week also held a special meeting to instruct local authorities to build up systems and strengthen monitoring to identify and “clear out” crypto mining projects.
- China has been actively clamping down on crypto mining since earlier this year. On Sept. 24, the NDRC jointly issued a notice with 10 other authorities to wipe out crypto mining. The NDRC has also proposed to label the crypto mining industry as “outdated,” which could prohibit investments in the sector.