Inner Mongolia authorities will close cryptocurrency mining enterprises

Authorities in China's Inner Mongolia Autonomous Region plan to conduct an investigation to findand the subsequent closure of cryptocurrency mining enterprises.

In September 2019, the local government ordered miners to stop their work.Officials said that the mining of digital assets is a "pseudo-financial innovation" that has nothing to do with the real economy.Therefore, the authorities believe that mining is not a priority area of production, and representatives of this type of activity "pretend to be participants in the information industry."

Verification is unlikely to have significantimpact on virtual currency production in Inner Mongolia, because most commercial institutions have already moved farms to other states. An employee of the Financial and Technological Institute Young Wang commented on the situation:

Most of my friends who worked in the crypto industry have already moved their business to Southeast Asian countries, for example, to Singapore. They think the Chinese crypto market has come to an end.

Blockchain, unlike mining, fell into the categoryimportant directions. In October this year, President Xi Jinping announced the need to develop technology for distributed databases. According to experts, China’s investment in the blockchain industry will reach $ 2 billion by 2023. In 2019, the bulk of the investment was aimed at developing blockchain applications for the banking sector, industry and construction.