China crypto crackdown: 10,100 mining rigs confiscated in Mongolia
- The Chinese government has seized 10,000 mining rigs in Mongolia.
- The action has got miners scrambling and looking to set up in more crypto-friendly regions.
- Crypto enthusiasts think the crackdown could be positive for the industry.
The Chinese government has intensified its efforts to ban cryptocurrency mining and trading in the country. China’s National Development and Reform Commission seized 10,100 crypto mining equipments from a government-operated tech park in Inner Mongolia as it continues its operations against miners in the region.
According to reports by local media, Reform Commission carried out the operation after a tipoff about suspicious activity at the warehouse in SME Pioneer Park.
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The latest crackdown makes it the 45th time such operation has been carried out in the Chinese Mongolia region. According to the report, the site consumed 1,104 kWh of electricity. Mongolia is one of the most important crypto mining regions in China, along with Qinghai, and Sichuan Yunnan Xinjiang. Not surprisingly, most of the government’s raid on mining sites has been in these regions.
Miners Looking For Crypto-Friendly Regions
After the government’s announcement of the crypto ban, some miners decided to move their operations to other crypto-friendly regions. But some still stayed back, hoping that the strict policies will be revisited and curtailed. But the crackdown has continued and it will see an increased exodus of miners from the region.
While some crypto enthusiasts may think China’s stance on crypto assets may affect the industry negatively, others are seeing a more positive impact in the industry.
Chinese Crackdown Could Benefit Crypto Development
David Marcus, co-creator of Facebook’s crypto project Diem, is one of those people who think that the Chinese crackdown will impact the industry positively. US Senator Pat Toomey also thinks the crackdown from the nation with the highest population could become more beneficial for the United States.
He says the hostility the Chinese government has put up against Bitcoin (BTC/USD) and crypto-asset could speed up the growth of the industry in the US as more miners are giving the opportunity to set up their facilities in the US.
He thinks Bitcoin is one of the most important innovations in finance in over a decade. As a result, Toomey believes China’s intolerance to cryptocurrency may not have a negative impact on the growth of the industry.