Chinese Regulators have issued a notice to ministries within the autonomous province of Inner Mongolia to crackdown on cryptocurrency mining in the region.
According to local news outlet ChainNews, five ministries and commissions in Inner Mongolia have been issued a warning to clean up cryptocurrency mining, which is heavily regulated under Chinese law. The document refers to crypto mining as “pseudo-financial innovation” that exists outside of the regular economy,
The virtual currency ‘mining’ industry belongs to the pseudo-financial innovation unrelated to the real economy, and should not be supported.
The crackdown will be carried out in two phases, according to details in the report. Phase I will occur from Sept. 3 to Sept. 25, allowing the ministries in question time for “self-examination and self-correction” in regards to crypto mining.
The second phase, which is set to begin on Sept. 30, will involve supervision and rectification by a joint inspection team to thoroughly review any ongoing crypto operations.
While some miners in the region have feared greater pressure from the Chinese government, other members of the crypto community remain skeptical.