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Chinese Government Issued Warning to State-owned Entities to Shun Crypto Mining

Crypto

China has issued a warning to its own state-owned firms to desist from crypto mining as it contemplates imposing harsher penalties on defaulters. The state is currently considering imposing stiffer expenses on energy.

The Chinese government’s latest warning comes barely two months removed from when it first cracked down on Bitcoin mining and other crypto-related activities in the country. According to Beijing, Bitcoin mining poses a credible threat to the country’s carbon neutral goals. In addition, it also results in a lot of energy wasted due to the energy-intensive nature of the mining process. The Chinese government even ascribed deadly coal mining accidents to Bitcoin mining.

Meng Wei, a spokesperson for the National Development and Reform Commission (NDRC), speaking at a pressing engagement, said that the NDRC is looking to stay on top of things. This includes regulating industrial BTC mining as well as any other state business involvement in crypto activities. The NDRC is China’s premier economic policy maker, which also covers mining, and has already made a number of moves. Such executive decisions include putting together a special forum on crypto. Furthermore, the NDRC is also ramping up the pressure on various Chinese provinces to put a stop to mining by state-owned businesses.

After the series of Chinese crackdown on mining, several Bitcoin and crypto miners had no other choice but to leave the country. Many, including Huobi, Binance, Bitmain, and BTC.com, now ply their trade from abroad.

Image Credits: Pixabay

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