February 22, 2024

Inner Mongolia, China May Limit Mining Companies

Regulators in China's Inner Mongolia Autonomous Province have issued a notice requiringrestrictions on the activities of all cryptocurrency mining companies in the province.

Five government agencies at onceInner Mongolia signed the document: Development and Reform Commission, Department of Public Security, Ministry of Industry, Ministry of Finance and Big Data Bureau.

“The virtual currency mining industry is a pseudo-financial innovation that is not related to the real economy, and should not be supported by the government,” the notice says.

Note that this is not a direct ban on activitiesmining companies in Inner Mongolia, and most likely will not affect the work of such companies. According to the partner of venture investment firm Primitive Ventures, Davy Van (Dovey Wan), mining companies will not respond to the notification.

Recent research conducted by analyticalby TokenInsight, it has shown that manufacturers of cryptocurrency mining equipment are not coping with the demand for devices. Against this background, the bitcoin hash rate is approaching 100 exhashes per second.