Chinese Province Proposes to Blacklist Illegal Bitcoin Miners in the Social Credit System

The Chinese provincial government of Inner Mongolia has issued a proposal to blacklist the national social credit system to everyone who violates new rulings on Bitcoin mining. Following China’s crackdown on crypto mining, the province wants to punish illegal miners with limited access to financial products and even restrictions on foreign travels, reported local media outlet Weixin.

According to the announcement done during the 51st meeting of the Financial Stability Development Committee of the State Council in Inner Mongolia, the blacklist seeks to punish internet providers and internet cafes who also favor illegal Bitcoin mining within the province. The proposal is named “Inner Mongolia Autonomous Region Development and Reform Commission on Resolutely Cracking Down on and Punishment of Virtual Currency.”

Looking Forward to Meeting You at iFX EXPO Dubai May 2021 – Making It Happen!

“For entities such as virtual currency ‘mining’ projects that privately access power sources without approval, under the Criminal Law of the People’s Republic of China and other relevant regulations, their illegal electricity theft shall be transferred to the judicial organs for handling per the law,” an excerpt of the proposal says.

The measure also aims to crack down on what the government named “illegal fundraising” on mining projects and banning public officials in Inner Mongolia from participating directly or indirectly in cryptocurrency mining-related activities.

China Harsh Tone on Crypto Mining

As Finance Magnates has been reporting over the last few days, Chinese miners have been struggling to figure out how to keep their operations alive for the long term. Beijing’s latest major crackdown on cryptocurrencies occurred in 2017 when the government banned exchanges from running their operations within the country and prohibited initial coin offerings (ICOs).

However, the latest reports suggest a stricter stance from the Chinese government towards crypto mining amid alleged concerns on energy supply issues due to such activities. Such a harsh tone had led mining firms such as Huobi Mall and BTC.TOP to halt their operations in China.

Globally, China accounts for almost 70% of the global Hash Rate, becoming a heavyweight in the crypto mining sphere.

Source: Read Full Article