A new announcement from the Inner Mongolia Autonomous Region Development and Reform Commission (DRC) informed the public that they now have a direct way to report any remote cryptocurrency transactions in the region.
As previously reported, Inner Mongolia was once home to a large network of crypto-mining operators, which collectively account for 7.71% of the global Bitcoin hash rate (BTC) between September 2019 and April 2020.
As part of Beijing’s aggressive and ambitious carbon reduction program, Chinese authorities are increasingly exploring the coal-rich Inner Mongolia region, where fossil fuels continue to depend on fossil fuels for abundance and cheap electricity. According to the Greenpeace report released at the end of March this year, Inner Mongolia approved the highest new coal-fired power generation capacity between 2016 and 2020 for the Democratic Republic of the Congo in China.
Today’s announcement clearly shows that regional authorities are trying to turn the tide on the energy front, including by strengthening the intensification of the fight against illegal and energy-consuming digital currencies. The phone line, email, and dedicated email service will provide locals with a reporting method that they can use to inform authorities about alleged crypto transactions in the area.
The announcement indicates that suspected units could disguise as data centers and enjoy preferential rights over taxes, land prices, and electricity while illegally engaging in cryptocurrency transactions.
The hotline is the latest attempt by local authorities to obtain the remaining mining operations in their jurisdiction. In August 2020, officials considered implementing a policy that would prevent cryptocurrency companies from using cheap, government-backed electricity. In March this year, a draft proposal was proposed to “clean up and close virtual currency mining projects” by the end of April. Today’s announcement reflects the same language, noting that the region is bent on reversing its past failures to meet Beijing’s goals of energy conservation.