CNBC reported on the 26th that the Inner Mongolia government, a sacred place for bitcoin mining, plans to severely punish miners such as license cancellation after the Chinese central government bans bitcoin trading and mining.
CNBC said this, citing well-known sources inside.
According to sources, the Inner Mongolia government has decided to impose strong penalties, such as canceling the licenses of mining companies in the jurisdiction. The Inner Mongolia government plans to punish not only mining companies, but also Internet companies and mobile operators related to them.
Earlier, the Inner Mongolia government ordered mining companies to close their factories within two months as the power was consumed by bitcoin mining in March.
Inner Mongolia is a site where a large number of bitcoin companies flock to mining bitcoin because of cheap electricity. As a result, the nickname of being a sacred place for bitcoin mining has emerged. It is estimated that about 8% of the world’s bitcoins are mined in Inner Mongolia.
At the time, the Inner Mongolia government came up with such a policy after receiving a strong reprimand from the central government for failing to meet the carbon dioxide emission reduction target.
In this situation, CNBC said that when China declared a ban on mining at the central government level for reducing carbon dioxide emissions, the Inner Mongolia government seems to be taking a hard line, such as canceling the mining company’s license.
Deputy Prime Minister Liu Heo said on the 21st that Bitcoin mining and trading will threaten the financial system as a whole, and will forcefully crack down. In particular, he declared that mining as well as bitcoin trading was prohibited.
China banned bitcoin trading in 2017, but mining was blinding.
When the news was delivered, Bitcoin was shocked by a drop to the 30,000 dollar mark. Bitcoin is trading at around $39,000 as of 2 pm on the 26th (Korean time).
