Inner Mongolia introduces new policies to eliminate mining activities; violators will be included in China's blacklist system for dishonest individuals.

After announcing the establishment of a cryptocurrency mining enterprise reporting platform, authorities in Inner Mongolia, China, have once again put forward eight new policies to gradually eliminate cryptocurrency mining-related activities.

On May 18th, in line with China's "14th Five-Year Plan" for energy consumption control, the Inner Mongolia government announced the establishment of a virtual currency mining enterprise reporting platform to leverage public supervision and as the latest action to eradicate local mining activities.

Crackdown on Mining: Eight New Policies

On Tuesday, 5/25, the Inner Mongolia Development and Reform Commission (DRC) once again launched a draft for eight new policies seeking public opinions. Compared to the previous "whistleblower hotline," this proposal is more specific and carries a stronger impact. The summary is as follows:

1. Increase energy-saving supervision on enterprises providing venues for miners such as industrial parks, data centers, and self-built power plants, and reduce energy consumption targets.

2. For enterprises involving mining activities like large data centers and cloud computing companies, various preferential policies will be canceled by the competent authority, and they will exit the Inner Mongolia electricity multilateral trading market.

3. For communication companies, internet enterprises, and others involved in mining, the competent authority will lawfully revoke value-added telecommunications business licenses and hold them accountable.

4. Internet cafes involved in mining activities will be closed down and rectified by the competent authority according to the law.

5. Unauthorized mining activities that illegally tap electricity will be transferred to judicial authorities for prosecution.

6. Enterprises and individuals engaged in money laundering with virtual currencies will be transferred to judicial authorities for processing according to relevant laws such as the Criminal Law of the People's Republic of China.

7. Enterprises and individuals engaging in illegal fundraising with virtual currencies will be strictly dealt with by the competent authority in accordance with relevant laws such as the Anti-Illegal Fundraising Law.

8. Enterprises and individuals involved in mining activities will be included in the blacklist of dishonesty; public officials who use their positions to participate in mining or provide facilitation and protection will be transferred to the disciplinary and supervisory authorities for handling.

Public Consultation Phase

The proposal is currently in the public consultation phase and will end on 6/1. From large fossil fuel power plants to small internet cafes, they are all on the regulatory list, showing Inner Mongolia's efforts to achieve the carbon neutrality goals set by the Chinese Communist Party.

In addition, if a company or individual is found to be involved in virtual currency mining activities, they will be blacklisted, leading to restrictions in future activities such as purchasing or renting houses, insurance, hotel stays, and even public transportation.