China warns state-owned companies to stop Bitcoin mining or face severe penalties


China has issued a warning to its state-owned enterprises to stop mining cryptocurrency. It also warned that it will raise electricity bills for companies that continue to violate the ban.

This latest warning was issued on the occasion of the ongoing encryption ban in East Asian countries. A few months ago, the Chinese government declared that all crypto trading activities were illegal. Subsequently, crypto miners and exchanges such as Huobi and Binance began to migrate to cryptocurrency-friendly countries.

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However, despite the crackdown on crypto, Chinese residents continue to trade Bitcoin. The Beijing authorities have not relaxed their efforts to find ways to prevent the use of cryptocurrencies. The Chinese government also accused the miners of being the chief culprit of the country’s high energy consumption. In May, during the suppression period, many large-scale encryption mines moved or ceased operations. Despite this, some small mining equipment continues to operate.

Last month, the Beijing authorities began tracking the IP addresses of citizens to check cryptocurrency mining activities. In addition, according to reports, Zhejiang authorities have also begun investigating government employees who illegally mine Bitcoin.

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Despite all these measures, energy consumption has not been significantly reduced. This has led officials to step up their efforts to confront state-owned enterprises.

Authorities crack down on industrial-scale Bitcoin mining

according to report, The National Development and Reform Commission (NDRC) plans to ban industrial-scale Bitcoin mining. And by extension, all state-owned companies involved in such activities. Meng Wei, a spokesman for the country’s chief economic planner, said at a press conference on Tuesday.

She also emphasized the unsustainable nature of crypto mining, noting that it consumes a lot of energy and generates a lot of carbon emissions.

BTC trading at $60.6K | Source: BTCUSD on TradingView.com

Last week, the National Development and Reform Commission held a special meeting to discuss contempt for the encryption ban. And urge all provinces and cities to investigate and deal with state-owned enterprises involved in mining.

China fires government officials for mining

Beijing has even continued to strengthen its stance on cryptocurrencies by hunting down government officials. A few days ago, China cancelled a former government official in Jiangxi.

Xiao Yi, the former vice chairman of the Jiangxi Provincial Committee of the Chinese People’s Political Consultative Conference, was accused of abusing his power to promote and support enterprises in violation of government policies. According to the Central Commission for Disciplinary Inspection, he was engaged in cryptocurrency mining and accepted bribes.

Xiao is the most senior Chinese official who has been punished for participating in cryptocurrency mining.

Featured image by Euronews, Chart from TradingView.com



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