Last Updated on 24/05/2021 by Khushi
China is going to create further hindrances, which is not definitely for the first time, for mining of cyotocurrencies within its boundaries. As per how Financial Times reports, the Inner Mongolia Development and Reform Commission (IMDRC) intends to establish a hotline for reporting suspected mining operations.
This update came following the Reuters’ report that China had prohibited financial institutions from providing “clients any service involving cryptocurrency, such as registration, trading, clearing, and settlement,” ostensibly to reduce speculative trading.
The latest crackdown on cryptocurrencies in China has lowered the value of Bitcoin, Ethereum, and other popular coins.
Regulators attempted to assert more control over the market in 2017 by prohibiting initial coin offerings, for example, and in 2019 it considered a ban on the entire industry.
Back in February, Inner Mongolia also announced that it would prohibit cryptocurrency mining in order to reduce its energy consumption. That would actually be a win for the environment.
The Financial Times reports that the IMDRC wants the hotline to assist it in “completely cleaning up and shutting down” any mining operations that have remained in the province despite the ban.
These efforts appear to be the cryptocurrency mining equivalent of McCarthyism: Inner Mongolia has effectively made it possible for anyone to accuse another of mining cryptocurrency. Depending on how severely mining is punished, the resulting investigation could be a terrifying experience for the accused.