Bitcoin spike after Inner Mongolia declares war on mining

Bitcoin spike after Inner Mongolia declares war on mining

Inner Mongolia, an autonomous region in northern China, has banned cryptocurrency mining.

Inner Mongolia announced its intention to close all these projects by April, raising fears that the world’s No. 2 economy will take more steps this year to eradicate this energy-hungry practice.

The autonomous region, the industry’s favorite due to cheap energy, has also banned new digital currency projects, according to a draft plan posted on the Inner Mongolia Development and Reform Commission website on February 25.

This move aims to limit the growth in energy consumption to about 1.9 percent in 2021.

The announcement raised fears of an industry that has been undergoing years of Chinese campaign to curtail it amid fears of speculation bubbles, fraud and wasted energy.

The draft policy was released weeks after the National Development and Reform Commission – the largest economic blueprint in China – was created. With criticism Inner Mongolia being the only province to fail to control energy consumption in 2019.

The region now aims to cut emissions per unit of GDP by 3 percent this year and control soaring energy consumption growth of 5 million tons of standard coal, according to For a draft the plan.

The coin is expanded Bitcoin Its gains on Monday amid reports of this move, as it rose 5.1 percent to $ 47,559.

Chinese officials identified for the first time proposals in 2018 to discourage mining for digital currencies, which consumes massive amounts of energy.

Inner Mongolia, which is home to large coal mines, is famous for cheap energy and has attracted investment from a large number of energy-intensive sectors, such as aluminum and ferroalloy smelting, over the past decades.

The region accounts for 8 percent of the global Bitcoin mining computing power, according to For index Bitcoin electricity consumption collected by the University of Cambridge.

China, overall, owns more than 65 percent of the total grid through its mix of cheap electricity, local chip manufacturing plants and cheap labor.

The domestic crackdown is reviving old fears, as since 2017 Beijing has canceled initial coin offerings and imposed restrictions on the circulation of virtual currencies within its borders, forcing many platforms to exit them.

The country was once home to about 90 percent of the trades and has the lion’s share of mining, but major players, such as Bitmain Technologies, have fled abroad since then.

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