Storm on the horizon for mining in Mongolia
Chinese government vs. cryptocurrency miners
The National Development and Reform Commission (NDRC) is the most important economic planning agency in China. The branch dealing with Inner Mongolia has just published a lengthy directive explaining the extent to which local authorities can repress cryptocurrency mining activity in the region.
The new directive is all part of efforts in Inner Mongolia to implement a public notice emitted by the NDRC on 25th February 2021.
This notice advocated for the elimination of all mining activity due to environmental concerns. Mining is seen as an obstacle to China’s goal of reducing CO2 emissions.
The new directive in Inner Mongolia is similarly motivated by the Chinese State Council’s notice on 21st May 2021 that spoke of cracking down on mining activity.
There are eight specific measures within the new directive that concern monitoring and sanctioning companies of all sizes, from big corporations to internet cafes, as well as individuals implicated in mining operations in Inner Mongolia.
The NDRC is currently accepting comments on the directive from the Chinese public until 1st June 2021.
The Inner Mongolia NDRC directive is applicable throughout the region. However, it could just as easily be used as a working principle in the national NDRC or even the central government.
The last notice by the Inner Mongolian NDRC aiming at repressing mining dates back to September 2019. It primarily took aim at data centres. Cryptocurrency mining firms were given time to either halt their mining activity or transport it elsewhere.
The new notice adopts a more global approach by affecting all those involved irrespective of their proximity to cryptocurrency mining.
Bobby Lee is the founder of the Ballet cryptocurrency wallet and the China-based BTCC exchange. During the China panel of CoinDesk’s Consensus 2021 conference, he stated that the issue is whether or not the local NDRC will be able to carry out its plan effectively.
Recent news gives the impression of complete chaos in the crypto industry, and it is making a Bitcoin (BTC) recovery increasingly difficult. At the time of writing, it is still trading below the $40,000 mark (~£28,200). Of course, the storm will pass before long, and the good times will return. The objective is to stay afloat until then.
Ingénieur de formation, et spécialisé dans les nouvelles technologies, je me suis toujours intéressé à la blockchain et aux cryptomonnaies. Je suis heureux de faire partie de l’équipe CoinTribune.