Chinese Regulators Cracking Down on Crypto Mining Companies
Northern China’s Inner Mongolia Autonomous Region is pushing inspection for crypto mining firms in the area. Meanwhile, it seems regulators in the region are thorough in cracking down and dispatching inspection units; Which will eventually assure “clean-up and rectification of crypto token mining companies.’
Crypto token Mining in China
The proposed inspection has its major target upon cryptocurrency mining companies whose models seem irrelevant to the real economy. In addition to companies that have been enjoying preferential government policies; such as land, local electricity rates, and taxes after pretending to be participants of the big data industry. The Chinese government issued a formal notice in September demanding a clean up of existing crypto mining companies. Five departments in Inner Mongolia took the urge to rectify the mining industry within its region. What followed was a sprint with the regulator declaring that virtual currency mining belonged to the pseudo-financial innovation and is entirely; unrelated to the real economy. Nevertheless, the regulator concluded that such ludicrous startups have not the right to receive state support.
Meanwhile, the impact of the planned inspection on crypto mining operators in Inner Mongolia is still unclear. However, several workers in the crypto mining industry have or are moving to other countries. A senior research fellow at the Fintech Institute of Renmin University, Yang Wang stated:
"Most people I knew who worked in the domestic crypto token industry have already shifted their businesses to Southeast Asian countries like Singapore. They felt that the crypto token market has come to an end in China.”
Chinese blockchain spending to exceed $2 billion by 2023
On November 13, Cryptoknowmics published a case study reporting China’s Blockchain spending will exceed $2 billion by the year 2023. The aftermath will be a compound annual growth rate of 65.7% between 2018 - 2023. Furthermore, the report also noted that the bulk of the Country’s blockchain spending will carter for the banking sector. Other sectors included in the report are manufacturing, professional services, and retail.
About The Author
Richard M AdrianBlockchain Analyst with a demonstrated history of working in the writing and editing industry. Skilled in WordPress, Editing, SEO Copywriting, Copy Editing, and Blog Marketing. When I am not writing, analyzing bulls/bears - I will be listening to music, reading a thrilling novella or hiking. Email me at Richardmadrian@gmail.com - And we could talk about anything - business or dragons.
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