The National Development and Reform Commission of the People’s Republic of China seized 10,100 cryptocurrency mining rigs from a government-run technology park in Inner Mongolia. The operation marked the 45th such confiscation in that province.
China against crypto mining
Just days after once again reminding that the processing of digital assets is banned within the country’s borders, the Chinese government (PBoC) seized mining equipment in the northern province of Inner Mongolia.
According to a local media, the National Development and Reform Commission (NDRC), which was in charge of the operation, received information about suspicious activity in a warehouse in the SME Pioneer Park in the Bayannaoer Economic Development Zone.
After investigating the facility, the NDRC discovered and seized 10,100 cryptocurrency mining machines. The authorities revealed that the mine’s electricity consumption was 1,104 kWh.
So far, China’s crackdown on crypto has led to the closure of 45 mining projects in Inner Mongolia province alone, which has theoretically saved 6.58 billion kilowatt-hours of electricity per year.
Interestingly, this equals 2 million tons of standard coal. The government has also carried out such operations in other Chinese provinces, called significant mining areas. Namely, those were Sichuan, Yunnan, Xinjiang, and Qinghai.
Would Local Miners Leave China?
Instead of shutting down, China’s harsh cryptocurrency environment has prompted some of the local miners to move their businesses to other countries. At least, that is what followed in May when the PBoC reiterated its ban on operating with BTC and other digital assets.
As CryptoPotato reported, at the time, Chinese cryptocurrency miners transferred nearly 3 tons of bitcoin mining equipment from Guangzhou to Maryland, United States. Interestingly, according to David Marcus – the co-creator and board member of Facebook Diem’s crypto project – the hostile stance on digital assets that China shows could be a big development for BTC.
Another similar opinion on the matter came from Senator Pat Toomey. The politician said cracking down on cryptocurrency in the most populous country could prove beneficial to the United States:
“China’s authoritarian crackdown on crypto, including Bitcoin, is a big opportunity for the U.S. It’s also a reminder of our huge structural advantage of China.”
He also stressed that Beijing is “so hostile to economic freedom that it cannot even tolerate its people participating in what is arguably the most exciting financial innovation in decades.”
