China’s Crackdown On “Illegal” Mining

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Bitcoin (BTC) miners in the Xinjiang Uyghur autonomous region in northwest China were warned to close their operations before 30th August 2018.

According to the notice from the Xinjiang Economic and Information Commission, published by a local news outlet Jinse, the mining companies will also have to report to the commission.

The notice states that the illegal companies failed to undergo a tax registration and are not registered as mining enterprises. They have also been using electricity without signing formal contracts with the utility companies.

“Local utility agencies and companies will be held accountable if they failed to shut down ‘illegal’ bitcoin mining operations,” – the EIC stated.

The utility companies are asked to shut down all of such illegal activities and report back to the authorities by the end of August 2018.

A change

China was a home to some of the largest mining operations up until recently. Since last year it is trying to decrease the mining activities within the country. In June 2017 the EIC issued a notice to municipal governments advising caution when supporting mining companies.

“These operations contribute nothing to the region’s economy besides consuming a spiking volume of electricity,” – the EIC explained in 2017.

What do you think about China’s crackdown on “illegal” mining? Share your thoughts in the comments below!

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