Cryptocurrency mining removed from Nei Mongol, Mongolia

Authorities in China’s Inner Mongolia Autonomous Region have issued a notification calling on cryptocurrency mining companies to cease operations, according to ChainNews.

China has enjoyed the status of the world’s hub for cryptocurrency mining, as it hosts much of the crypto miners who seek cheap electricity. Inner Mongolia was among the Chinese regions where many mining companies chose to establish their operations. The coal-rich area allows miners to benefit from cheap electricity. Other regions, such as Sichuan and Yunnan, are attractive to miners because they have cheap hydroelectric power.

However, the Inner Mongolia authorities have decided to evacuate crypto miners from the administered territory. Five local departments, including the Financial Bureau, the Bureau of the Ministry of Industry, the Development and Reform Commission, the Big Data Bureau and the Department of Public Security have issued a notification stating that cryptocurrency mining does not help the local economy at all.

A first step in eliminating cryptocurrency mining in China?

Authorities have decided to cease support for crypto miners, even though some companies have managed to reach exclusive agreements with municipalities. For example, Bitmain has an agreement with the Ordos authorities to obtain even cheaper electricity.

The decision of the Inner Mongolia departments could indicate the general attitude of the Chinese government to mining operations.

In April this year, we reported that the National Development and Reform Commission of China (NDRC) has unveiled its plan to eliminate Bitcoin mining in the country.

The strategy will have two phases: between September 3 – September 25, 2019, the cities of the region will inspect the situation and submit reports to the Ministry of Industry and Information Technology in the region by September 30.

The second phase begins on October 10 and continues until the end of the month, when Mongolia’s services will ensure that crypto mining farms have closed.