January 29, 2023

Chinese regulators will increase pressure on miners

Chinese regulators will increase pressure on miners

Authorities of the Autonomous Chinese Province of InnerMongolia intends to conduct massive inspections of mining companies to force them to start providing hardware infrastructure services for blockchain technology supported by the government.

The officials thus decided to fight the chaos,speculation and illegal digital transactions. Since the Chinese authorities consider cryptocurrency mining a pseudo-financial innovation that is not related to the real economy, mining companies will become the main goals upcoming checks.

Regulators are also paying close attention to enterprises that use preferential tariffs for electricity, posing as representatives of the big data industry.

To clean up the region’s economy, the governmentInner Mongolia will send a joint inspection team to inspect, “screen and correct” companies, according to a notice from the local Department of Industry and Information Technology.

According to businessmen, having learned about the regulators' intentions, many miners did not wait for the start of a new wave of inspections and decided to move their business to other regions and countries of Asia.

Parallel to the infringement of the crypto industry, Chinaactively studying the prospects for the use of blockchain and artificial intelligence in the field of cross-border financing. Until 2023, the country plans to invest more than $ 2 billion in the development of the blockchain.