Altcoin News: China May Limit Mining Companies

September 16, 2019, by Marko Vidrih on ALTCOIN MAGAZINE

Regulators of the Chinese autonomous province of Inner Mongolia issued a notice requiring the restriction of the activities of all cryptocurrency mining companies in the province.

Five government agencies of Inner Mongolia signed up to the document: the Development and Reform Commission, the Department of Public Security, the Ministry of Industry, the Ministry of Finance and the Big Data Bureau.

“The virtual currency ‘mining’ industry belongs to the pseudo-financial innovation unrelated to the real economy, and should not be supported,” the notification says.

Note that this is not a direct ban on the activities of mining companies in Inner Mongolia, and most likely will not affect the work of such companies. According to the partner of venture investment firm Primitive Ventures, Dovey Wan, mining companies will not respond to the notification.

A recent study by TokenInsight, an analytics company, showed that manufacturers of cryptocurrency mining equipment could not cope with the demand for devices. Against this background, the Bitcoin hash rate is approaching 100 exheshes per second.

Author: Marko Vidrih