A Chinese news outlet reported that five departments of the Inner Mongolia Autonomous Region have issued a notice that suggests a restriction on crypto mining firms in the region. According to the news outlet, regulators believe that the cryptocurrency mining industry belongs to pseudo-financial innovation and is unrelated to the real economy.
Chinese venture capitalist, Dovey Wan in a series of tweets revealed that Inner Mongolia authorities are not only planning to restrict crypto mining but also cloud computing, big data, IDC, and data center. She added that she doubts it would have much impact on the crypto mining firms.
One thing to pay attention this time – it mentioned not just crypto mining but also “cloud computing, big data, IDC and data center” are included in the effort of “screening”
Crypto mining business usually disguise as above “legit” business in the eyes of Chinese regulator
— Dovey Wan 🗝 🦖 (@DoveyWan) September 14, 2019
Autonomous Region Development and Reform Commission, the Public Security Department, the Office of the Ministry of Industry, the Financial Office, and the Big Data Bureau are expected to inspect the situation and take measures over the next two months.
Earlier China’s economic planning commission labeled Bitcoin mining as dangerous. Inner Mongolian government operates separately from the Beijing government, and this decision could possibly be a sign of a bigger policy change in the future.
Currently, most of the crypto mining firms in China are located at Sichuan river region because of the huge amount of cheap hydroelectric power available in the area.