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The government of China’s Inner Mongolia is considering to to shut down all crypto mining farms in the area.
Last week, the Inner Mongolia Development and Reformation Commission (DRC) published a proposal recommending a variety of regulatory measures that aim to help the region achieve energy saving goals under China’s 14th five-year economic plan that runs from 2021 to 2025.
The Inner Mongolia region, after Sichuan and Xinjiang, is the third largest spot in China where bitcoin mining farms would call home. Energy supply relying on local fossil power plants remains cheap and therefore propose highly valuable for mining activities.
The government agency’s proposal is outspoken in its mission to eliminate industries that consume excessive energy and states that it is intent to: “fully clear out and shut down all virtual currency mining projects by the end of April 2021.”
The proposal further includes a push to “properly control the development scale of data centers and prohibits constructing any new virtual currency mining projects.”
While the public consultation period will last until March 3 it remains questionable if Mongolia DRC would eventually change their stance on crypto mining.
In a 2019 draft proposal on industrial reorganization, the NDRC already listed crypto mining as a group of industries that should be eliminated. However, after a public consultation process, the agency changed their position on crypto mining in the final reorganization guidance.
This is not the first time that the Inner Mongolia government is trying to upset crypto mining business. In August 2020, it stripped of electricity perks for 21 bitcoin mining farms that included the ones belonging to bitcoin miner makers Bitmain and Ebang.
Last years’ development against the crypto(mining) business fit the narrative of Chinese government battling speculation bubbles, fraud and energy waste in the country.