China Hardens Stance on Mining: Warns State-Owned Companies to Avoid Cryptocurrency Mining

In a public letter dated November 16, the Chinese Government has warned state-owned enterprises to cease involvement in Bitcoin mining.

In September, Chinese authorities ruled that all crypto transactions in the nation were illegal, adding that they would eliminate the mining of digital assets. Since then, the Chinese Government has ramped up its crypto crackdown, leading to the Great Mining Migration.

On Saturday, November 13th, China’s Central Commission for Discipline Inspection stripped Xiao Yi, a former member and vice-chairman of the Jiangxi Provincial Political Consultative Conference, of his position. 

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In addition, Xiao Yi was expelled from the communist party for allowing cryptocurrency mining to happen

In a public letter, dated November 16th, the Chinese government warned state-owned enterprises to cease any and all involvement in Bitcoin mining. The Chinese authorities have called mining an “extremely harmful” practice that threatens its carbon emissions goals.

According to Meng Wei, a spokesperson for the National Development and Reform Commission (NDRC), companies that defy the ban will be made to pay higher electricity prices. 

Meng added that for China to reach its carbon emissions goals, the nation must “strictly prevent (mining) from rising from the ashes.”

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As news of China’s renewed crackdown emerged, Bitcoin tumbled by almost 9%, reaching an interday low of $59,016,  its lowest point since October 28th.

This article is for information purposes only and should not be considered trading or investment advice. Nothing herein shall be construed as financial, legal, or tax advice. Trading forex, cryptocurrencies, and CFDs pose a considerable risk of loss.

Author
Milko Trajcevski

Milko Trajcevski is a DailyCoin news reporter, mainly focused on Ethereum (ETH), Cardano (ADA), and their founders (Vitalik Buterin and Charles Hoskinson). Milko is an avid follower of crypto and blockchain technology and has written thousands of articles on the subjects. He finds joy in transforming complex issues into written content that anyone can understand. Milko has used and analyzed numerous exchanges, such as Coinbase, FTX, and Binance. He also closely follows all of the latest news around the largest decentralized exchanges (DEXs). Location: Skopje, Macedonia