China came up with a new way to crack down on cryptocurrency

The government promises to raise the price of electricity for companies that ignore the ban on mining

17.11.2021 - 13:15

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What’s new? The Chinese authorities plan to introduce new measures to crack down on cryptocurrencies. The government warns state-owned enterprises against mining digital assets, promising to raise the price of electricity for companies that ignore the ban on mining. This is reported by the Bloomberg news agency.

Bloomberg article

What do regulators say? Meng Wei of the National Development and Reform Commission called mining a harmful practice that has become an obstacle to the country's carbon reduction. She noted that cryptocurrency mining is characterized by high energy costs. Wei described the industry as disorderly, explaining that it comes with certain risks. According to her, the commission will soon begin a full-scale crackdown on cryptocurrency mining in the country.

What had happened before? In September, the People's Bank of China announced that cryptocurrency-related activities were banned in the country. The exchange of fiat currency for virtual currency and transactions between digital assets have been made illegal in China. Intermediary services for cryptocurrency transactions are also banned.

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