China to make new moves to flush out Bitcoin (BTC) miners
- China says the environmental impact of crypto mining is in direct contrast with the country’s goals.
- The draft proposal stated that any company involved in crypto mining could have its license revoked.
- Bitcoin’s price has plummeted by over 30% since the Chinese government announced the crackdown.
China is making its sanctions on Bitcoin miners even tougher after its Inner Mongolia regional government set out more stringent punishment for violators.
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This is coming barely a week after the Chinese government hinted that it will start a massive crackdown on Bitcoin mining activities.
A plot to reduce the environmental impact of Bitcoin mining
According to the earlier notice, the Chinese government says it is intensifying efforts to ban mining operations in the country due to its environmental implications. It said the extreme emission of carbon through crypto mining is in direct contrast with the country’s goals of reducing carbon emissions.
The NDRC has opened its portal for public comments about the guideline from May 25 to June 1 before the final decision is taken.
Heavy impact on crypto prices
Last week, the crypto community in China was put in a frenzied state after Chinese Vice Premier Liu He announced that the government is looking to crackdown on Bitcoin trading and mining.
He stated that the reason was to prevent the “transmission of individual risks to the social field.”
The comments were in line with China’s intentions to speed up its four-year crackdown on Bitcoin trading and related activities.
But the latest draft proposal by Inner Mongolia is specifically directed at internet and telecommunications companies that engage in virtual currency mining. According to NDRC, if such companies are involved in crypto mining, they could lose their business license in the country.
The situation in China has also affected the price of Bitcoin (BTC/USD), as the world’s most valuable cryptocurrency has shed more than 30% after the Vice Premier’s announcement.