April 21, 2021

China proposes to ban mining

In the Inner Mongolia region, an initiative is being considered to restrict activities in industries with increased energy consumption, including for the extraction of cryptocurrencies.

The authorities of the Inner Mongolia region have proposedban mining entirely in order to meet energy conservation targets in line with China's five-year economic plan. The regional administration is collecting public comments on the upcoming normative act, writes The Block.

Internal Development and Reform CommissionMongolia last week presented a proposal for legislative changes to help the region meet the five-year plan. Among other things, the document prohibits the construction of new farms for the extraction of cryptocurrency.

The public consultation period will last untilthe third of March. The State Committee for Development and Reforms of the PRC, which includes the agency that proposed the initiative, has previously advocated a ban on mining in the country. In 2019, he added mining to over 450 unwanted activities that violate applicable laws, are unsafe, waste resources and pollute the environment. However, then the mining of cryptocurrency was excluded from the list.