Chinese regulators will add crypto businessmen to the list of “unreliable persons”

The authorities of Inner Mongolia (an autonomous region in northern China) have developed a plan to implement the ordersState Council on the fight against Bitcoin mining and trading.

On Friday, Chinese Vice Premier Liu He called for"Harsh" suppression of "illegal activities", including cryptocurrency mining and trading. The announcement triggered a drop in cryptocurrency prices and prompted several cryptocurrency companies to cease their operations in China.

The Inner Mongolian authorities promptly developedtheir version of the document and submitted it for public discussion. Regulators propose to limit energy consumption of 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 forunauthorized connection to power grids for the purpose of mining. Imprisonment will also punish money laundering and illegal fundraising using cryptocurrencies.

Companies and individuals involved in cryptocurrency miningin the country will be listed as unreliable, in accordance with the social credit system. In addition, officials supporting the miners will be subject to disciplinary action by the Chinese Communist Party.

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