China warns state-owned companies to cease involvement in Bitcoin mining

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China is pressuring its own state-owned companies to stop mining cryptocurrencies, and the government is considering tough sanctions on the companies that continue, including higher energy spending.

National Development and Reform Commission (NDRC) spokesperson Meng Wei said at a press conference that as China’s leading economic planner, the NDRC has been reported to have intention to regulate industrial-scale bitcoin mining and any involvement of state-owned enterprises in the activity. The NDRC, which is in charge of developing mining policy, reportedly recently organized a special session on the subject. It has also increased pressure on provinces and municipalities to investigate and clean up state mining companies.

The Chinese government has taken a tough stance against Bitcoin miners in 2021, blaming them for everything from wasted energy to fatal accidents in coal mines as it strives to meet its carbon neutrality goals.

The increased crackdown on minors in September, sources said, was prompted by concerns over the country’s power supply for the winter season, which is one of the reasons authorities have reportedly prosecuted those who attempted to sneak in. masquerade as data diggers and storage facilities to continue exploiting the digital asset.

As Cointelegraph reported, China fired a former Jiangxi government official for violating national standards after he was discovered mining virtual currencies, the Central Commission for Discipline Inspection said on Monday. . According to preliminary findings, Xiao Yi was accused of abusing his power to promote and support companies engaged in virtual currency mining activities against government rules, as well as accepting bribes. .

The Chinese government’s latest cryptocurrency crackdown has forced the booming cryptocurrency industry, including Bitcoin (BTC) and crypto miners and exchanges, to relocate to countries with favorable regulations. to crypto. Some of the companies that have left China to find a more accommodating regulator include Huobi, Binance, BTC.com and Bitmain.

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