"Will Bitcoin Rise Further?"... China Takes Strong Measures with 'Mining Ban'

Inner Mongolia Plans Total Ban on Mining for Energy Saving
China Estimated to Account for 70% of Global Mining Volume... Cryptocurrency Prices May Rise Further

[Asia Economy Beijing=Special Correspondent Jo Young-shin] It has been reported that local governments in China are considering a complete ban on cryptocurrency mining, including Bitcoin. This strong measure appears to be aimed at achieving energy-saving goals such as reducing electricity consumption. Cryptocurrency mining consumes an enormous amount of electricity.

[Image source=Yonhap News]

According to Chinese economic media Caixin on the 2nd, the Development Planning Commission, the main economic development planning authority of the Inner Mongolia Autonomous Region, recently announced plans to completely shut down cryptocurrency mining farms within the autonomous region by the end of April. The autonomous region has reportedly entered a public consultation process to this end, the media said.

This is the first time Chinese authorities have publicly ordered a complete shutdown of cryptocurrency mining farms. The closure measure in Inner Mongolia Autonomous Region is likely to be expanded to other provinces or autonomous regions with many mining farms.

Since 2017, China has completely banned the issuance and trading of cryptocurrencies but has not prohibited mining. It is reported that cryptocurrencies mined within China account for 70% of the global cryptocurrency mining market.

The recent measure by the Inner Mongolia Autonomous Region is explained as an effort to achieve energy-saving targets. The region plans to control the growth rate of energy consumption within its jurisdiction to within 1.9% this year.

Northwestern border regions of China, including Inner Mongolia Autonomous Region, are known to attract large cryptocurrency mining companies due to low electricity costs and cool climate.

After President Xi Jinping presented the goal of achieving carbon neutrality by 2060 at last year’s United Nations General Assembly, China has elevated energy consumption reduction and new energy technology development to a national agenda.