China had been known as the crypto-mining hub until it announced a ban on mining of cryptos. Regulatory bodies from the Inner Mongolia Autonomous Region have decided on restricting cryptocurrency mining within its province, reported Chian News.
The notice mentioned a screening process for not only virtual currency mining enterprises, but also Cloud computing, big data, IDC, and data centers. According to Dovey Wan of Primitive Ventures, “crypto mining business usually disguise as above “legit” business in the eyes of Chinese regulator.”
The publication wrote:
“According to the document, in order to implement the relevant instructions of the National Financial Work Conference and the leaders of the autonomous region, the virtual currency “mining” industry belongs to the pseudo-financial innovation unrelated to the real economy, and should not be supported.”
The relevant regulatory bodies include Autonomous Region Development and Reform Commission, the Public Security Department, Office of the Ministry of Industry, The Financial Office and Big Data Bureau. Regulators are going to start the “cleanup and rectification” of these enterprises in the district and have divided the process into two phases:
- The first phase will comprise of self-examination and self-correction of various cities. The feedback then will be submitted to the Ministry of Industry and Information Technology. The first phase was kickstarted on September 3 and is assumed to culminate on September 25, 2019.
- The second phase will entail supervising and rectification clubbed with inspections. This is expected to take place from October 10th to October 30th, 2019.