Regulators in China’s autonomous province of Inner Mongolia have signaled they will begin drastically restricting crypto mining in the area, after finding it a drag on the economy.

According to a report by BlockPublisher, five departments of the Inner Mongolia administration will work together to rein in cryptocurrency mining.

Crypto Mining Deemed Irrelevant to China’s Economic Betterment

The Financial Office, Development and Reform Commission, the Office of the Ministry of Industry, the Big Data Bureau, and the Public Security Department of Inner Mongolia have released a joint statement, proclaiming, “The virtual currency ‘mining’ industry belongs to the pseudo-financial innovation unrelated to the real economy, and should not be supported.”

The five agencies have made known plans to expel the crypto mining industry from Inner Mongolia in two phases, with the first having already begun on September 3rd, 2019 and the second to begin on October 10th. The governmental bodies are urging miners to cease operations, but have yet to outline any punitive measures.

China’s Crypto Mining Unlikely to End

Mining for cryptocurrencies such as Bitcoin is widespread in China, with some reports estimating up to 70% of the world’s Bitcoin being mined in the nation. Of the amount of Bitcoin mined in China, 70% is believed to be mined in the province of Sichuan alone, but Inner Mongolia is still among the top five areas for mining in the country.

The prevalence of crypto mining in China has led some, such as Primitive Ventures founder Dovey Wan, to believe that a crackdown will have limited effect. A presumed 30,000 illegal mining machines are said to be operating in Sichuan.

Source: blockpublisher.com

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