China warns state companies not to support crypto mining

Chinese government officials have warned that there will be penalties for state-owned companies that do not comply with the crypto mining ban.

National Development and Reform Commission (NDRC) spokesperson Meng Wei said that China will seek to regulate industrial-scale Bitcoin (BTC) mining as well as the involvement of any known state company in those activities.

The Chinese government has come down hard on BTC miners, outlawing all crypto transactions in September. It argued that a series of energy issues that emerged in the country recently were due to excessive crypto mining.

In one case, China dismissed a former Jiangxi government official as he was linked to a mining operation. Xiao Yi was accused of abusing his power and using his standing within the government to help other businesses that were interested in mining digital currencies.

The Chinese government’s stance on crypto currencies has been well-established and the country has launched a large-scale crackdown. Private companies such as Huobi, Binance and BTC.com have been quick to quit the country.

Not only that, but many have stopped accepting Chinese citizens to avoid the long-reaching arm of Beijing, which often engages with overseas prosecution of its “enemies”.

China’s ban on crypto sent the BTC hash rate reeling, but it also allowed for other hubs to emerge as potential leaders.

Cities in the US have been vying for a chance to be recognized as the next crypto hub in the country.

Kazakhstan shaped up as a great alternative to China for crypto mining, owing to cheap electricity prices. Kazakhstan has been cautious not to allow unlicensed miners, however.

In the meantime, you can use BTC for recreational purposes at 1xBit, Bitcasino, and FortuneJack.

Source

Updated: 11/16/2021 — 11:00