According to the Global Times report, North China’s Inner Mongolia Autonomous Region is planning to enforce a ban on crypto mining by setting up a reporting platform for the public to report on enterprises engaging in any mining activities. Chinese regulators are now tightening supervision of runaway cryptocurrency prices, the report noted. The price of bitcoin plunged below $40,000 first time since February.
The platform will accept complaints about crypto mining.
The newly set up platform will accept complaints and clues about companies engaging in crypto mining, disguising themselves as data centers to enjoy preferential tax, land, and energy policies, obtaining electricity supply through illegal means for operating crypto mining projects, according to an official statement issued by the Inner Mongolia Development and Reform Commission on Tuesday. This decision would have a massive impact on the crypto industry as most of the bitcoin mining happens in China. This step might have come on the heels of China’s plans to reduce carbon footprint in the coming years.
Financial institutions and payment platforms are banned from dealing with crypto firms.
Financial institutions and payment platforms are not allowed to handle businesses connected to cryptocurrencies, three Chinese industry associations announced earlier while sending a warning to investors about the risks associated with speculative bets on cryptocurrencies. Three Chinese industry associations, the National Internet Finance Association of China, the China Banking Association, and the Payment and Clearing Association of China, revealed in a joint statement on Tuesday. Inner Mongolia region is planning to clean up and shut down virtual currency mining by the end of April. Apart from banning all crypto mining firms, local authorities also banned setting up any new virtual currency mines.