Inner Mongolia establishes a platform for reporting virtual currency mining companies; official: will continue to intensively regulate mining in the future

Based on China's "Dual Control" energy consumption targets in the 14th Five-Year Plan, the Inner Mongolia government announced the establishment of a platform for reporting virtual currency mining companies to enhance public supervision and as the latest action to eliminate local mining activities.

The Inner Mongolia Development and Reform Commission (DRC) released this announcement on 5/18, just before the collapse of the cryptocurrency market, and this move is also considered one of the key factors leading to the market collapse.

The 14th Five-Year Plan

The Chinese government announced the latest "14th Five-Year Plan" at the end of October last year. The plan focuses on 20 major goals for economic and social development over the next five years, 102 major projects, covering five main aspects:

• Economic Development
• Innovation-Driven Growth
• People's Wellbeing
• Green Ecology
• Security

Continued High-Pressure Regulation on Cryptocurrencies in the Future

The announcement states:

Comprehensive cleaning up and closure of cryptocurrency "mining" projects, fully utilizing the role of public supervision for protection, improving the reporting channels for cryptocurrency "mining" enterprises, and setting up a platform for reporting cryptocurrency "mining" enterprises under the "Office of the Dual Control of Energy Consumption Emergency Command" in the region, comprehensively accepting complaints and reports on issues related to cryptocurrency "mining" businesses.

Reporting scope:

Cryptocurrency "mining" enterprises, including various covert "mining" enterprises and entities:

1. Cryptocurrency "mining" enterprises disguised as data centers to enjoy preferential policies in taxation, land, electricity prices, etc.
2. Enterprises providing venue leasing services for cryptocurrency "mining" enterprises
3. Enterprises engaging in cryptocurrency "mining" operations by illegally obtaining electricity supply

Reporting methods include letters, phone calls, and online reporting.

Complete Cleaning and Closure of Cryptocurrency Mining Facilities by the End of April

Around the end of April, the National Development and Reform Commission (NDRC) of Inner Mongolia announced that it would close cryptocurrency mining projects based on its energy-saving regulations.

According to Reuters, Beijing's energy consumption and intensity review showed that Inner Mongolia was the only region on the mainland that did not achieve its energy-saving target in 2019, and the situation was even worse in 2020.