Chinese authorities in Inner Mongolia province are planning a new wave of inspections at crypto farms. The Global Times news agency reported that a series of checks will be carried out to determine the “relevance” of the activity to the local economy.
Companies that mine cryptocurrencies whose businesses are considered irrelevant to the “real economy” will be the targets of these inspections. Specifically, these are farms that have enjoyed preferential government policies. These include low prices for electricity, land and taxes.
In September, the local government issued an order requesting the cleaning of crypto mining companies in five regions of Inner Mongolia province.
The crypto mining market has ended in China
Many of those who have had cryptocurrency operations have already opted to move.
Yang Wang, a researcher at the Fintech Institute of Renmin University in China, said:
“Most of the people I met who worked in the domestic crypto-tokens industry have already moved their businesses to countries in Southeast Asia, such as Singapore. They considered the crypto mining market to end in China. ”
A few months ago, there were rumors in the press that cryptocurrency mining would be banned in China.
However, the National Commission for Development and Reform (NDRC), the high-level economic planning agency within the State Council of China, has decided not to ban this activity.
Subsequently, the statement of the Chinese president promoting blockchain technology was considered a positive signal for the crypto industry. Apparently, the official support implies a stricter regulation and verification of the mining activity.
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