China targets ‘extremely harmful’ crypto mining again

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Chinese authorities are stepping up crackdown on cryptocurrency mining, calling it an “extremely harmful” practice that threatens to undermine the country’s efforts to reduce carbon emissions. From a report: National Development and Reform Commission spokesman Meng Wei blasted bitcoin mining at a press conference in Beijing on Tuesday. She said this activity “consumes a lot of energy” and “produces a lot of carbon emissions”. Meng said the NDRC – the country’s largest economic planner – will launch a “large-scale” crackdown on cryptocurrency mining with a focus on commercial mining and the role of state-owned companies in the industry. . She also said there are “significant risks” in the production and trading of cryptocurrencies and called the industry “blind and messy.”

As part of its new push, the NDRC has said it will raise electricity prices for any institution that abuses its access to subsidized electricity to participate in crypto mining. Authorities have traditionally offered schools, community centers or other public welfare institutions lower prices for electricity. The price of bitcoin fell after the comments, plunging more than 7% to $ 60,889, its lowest value in more than a week. Although the reason for the fall was not immediately clear, it coincided with the NDRC press conference. Ether, the second-largest digital token after bitcoin, slipped more than 8% on Tuesday to $ 4,297, the worst level in two weeks.

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