China Issues Stern Warnings to Local Firms Against Crypto Mining

As China’s crackdown on crypto continues to intensify, new reports have revealed that the country is issuing stern warnings to its state-owned enterprises (SOEs) against involvement in cryptocurrency mining activities.

China noted that it will be imposing sanctions in the form of higher power prices on industrial-scale bitcoin miners and their SOEs that fail to adhere to this instruction.

The declaration was made by a spokeswoman for the nation’s chief economic planner, Meng Wei, at a press conference.

The Chinese government will be carrying out this move through its macroeconomic management agency, the National Development and Reform Commission (NDRC).

NDRC previously held a meeting last week to discuss ways in which the SOEs that fail to adhere to instructions can be investigated and discovered.

China Crypto Crackdown History

China’s recent unfavorable stance on crypto is not surprising as the country has in the past gone as far as declaring cryptocurrency-related activities illegal.

In May, China vowed to toughen its stance on the crypto industry and also issued warnings to investors against trading in Bitcoin (BTC) and other cryptocurrencies and added that they will not be protected if they continue trading in these assets.

A month later, the Chinese government issued warnings to banks and other payment platforms to stop offering crypto services as well as mining.

The latest crackdown on crypto occurred in September when China’s central bank declared that all transactions relating to cryptocurrencies are illegal, that it threatens “the safety of people’s assets” and must be stopped.

Crypto Continues to Surge Despite Crackdown

For many years, China used to be the biggest crypto mining hub, but since its crackdown on the industry, crypto miners have continued to migrate to other crypto friendly environments.

It accommodated more than half of the world’s population of BTC miners, significantly reaching peaks of 75.53% in September 2019 and 67% in September 2020.

According to a report last month by the Cambridge Judge Business School, the United States has overtaken China to become the biggest BTC mining hub in the world.

China’s Crypto crackdown has not affected cryptocurrency activity in any way as the asset class continues to surge.