In what is seen as a bold move, cryptocurrency mining has been banned in Inner Mongolia in China. Whether this will dampen the cryptocurrency market remains to be seen but it will surely be something that will be talked about for years to come.
Among the world’s top miners
Inner Mongolia, an autonomous region is a popular cryptocurrency location because of its cheap power. The latest move here could potentially mean that more steps will ensue that would cause more shut-downs on cryptocurrency mining. China has been one of the largest bitcoin mining communities in the world in recent years.
More expected to follow
The ban will be followed by directives to shut down all mining activities by April 2021. Besides that, new digital coin projects will also be banned. This is part of the efforts by the Inner Mongolian region to control energy consumption there, ensuring that growth is within its 1.9% projection for the year. China has been consistently coming down hard on crypto mining activities due to energy waste, frauds, scams and speculation exercises. Inner Mongolia came into the limelight after being criticized for failing to control energy consumption 2 years earlier.
It must be noted that Inner Mongolia has a rich source of coal which is why it is popular for inexpensive energy. According to a recent report by Cambridge University, Inner Mongolia accounts for 8% of the global mining computing power for Bitcoin. China had once been involved in 90% of the crypto trades globally but this has changed with the crackdown launched since 2017.