The authorities of Inner Mongolia (an autonomous region in northern China) have developed a plan to implement the orders of the State Council to combat Bitcoin mining and trading.
Chinese Vice Premier Liu He on Friday called for a “severe” crackdown on “illegal activities,” including cryptocurrency mining and trading. The announcement caused a drop in cryptocurrency prices, and prompted several cryptocurrency companies to cease their operations in China.
Inner Mongolia authorities quickly developed their own version of the document and submitted it for public discussion. Regulators propose to limit energy consumption by industrial parks and data centers at the legislative level. Telecommunications companies are prohibited from working with miners under threat of license revocation.
The bill also introduces criminal penalties for unauthorized connection to power grids for the purpose of mining. Fund laundering and illegal fundraising using cryptocurrencies will also be punishable by imprisonment.
Companies and individuals involved in the mining of cryptocurrency in the country will be included in the list of unreliable ones, in accordance with the social credit system. In addition, officials who support miners will be subject to disciplinary action from the Chinese Communist Party.
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