China proposes to ban cryptocurrency mining

In the Inner Mongolia region, an initiative is being considered to restrict activities in industries with high energy consumption, including the mining of cryptocurrencies.

Authorities in the Inner Mongolia region have proposed a complete ban on mining in order to meet energy conservation targets in line with China’s five-year economic plan. The regional administration is collecting public comments on the upcoming normative act, writes The Block.

The Inner Mongolia Development and Reform Commission last week presented a proposal for legislative changes to help the region meet the five-year plan. Among other things, the document prohibits the construction of new farms for the extraction of cryptocurrency.

This is a proposal from The National Development and Reform Commission (DRC). According to the document, the restrictions will allow the region to fulfill its energy conservation goals in accordance with China’s economic plan for 2021-2025.

The authorities have proposed to ban activities in industries with high energy consumption, including mining. The farms are planned to be closed by the end of April 2021. By March 3, DRC will complete the collection of public comments on the regulation, after which it will make a decision.

The State Committee for Development and Reforms of the PRC, which includes the agency that proposed the initiative, had previously advocated a ban on mining in the country. In 2019, he added mining to over 450 unwanted activities that violate applicable laws, are unsafe, waste resources, and pollute the environment. However, then the mining of cryptocurrency was excluded from the list.

Read actual crypto news and crypto forecasts every day on https://news.bitxmi.com/

Disclaimer: Bitxmi News is a news portal and does not provide any financial advice. Bitxmi's role is to inform the cryptocurrency and blockchain community about what's going on in this space. Please do your own due diligence before making any investment. Bitxmi News won't be responsible for any loss of funds.