Inner Mongolia Seizes 10,100 Mining Rigs From Government Tech Park

The action comes days after China’s National Development and Reform Commission laid out its vision for eliminating crypto mining from the country.

AccessTimeIconSep 27, 2021 at 8:32 a.m. UTC
Updated Sep 27, 2021 at 2:11 p.m. UTC

Eliza Gkritsi is CoinDesk's crypto mining reporter based in Asia.

Authorities in China’s Inner Mongolia province seized 10,100 crypto mining rigs from a government-operated tech park, according to local media.

  • A branch of the Development and Reform Commission in Bayannaoer city found an illicit mining operation at the park, local media reported, citing China’s official Xinhua News Agency.
  • The action comes days after the country’s top government agencies announced a renewed crackdown on crypto trading and mining. China’s highest economic planning body, the National Development and Reform Commission, banned investment in new mining operations, and said all existing projects will be phased out.
  • The closure brings Inner Mongolia’s total to 45 mining projects shut down, saving the province 6.58 billion kWh of electricity – or 2 million tons of coal – a year, the article said.
  • The mine in question was consuming 1,104 kWh, according to the report, and was located at “SME [small and medium enterprises] Pioneer Park,” in the city’s Economic and Technological Development Zone.
  • Such zones and parks are areas where the government sets preferential policies such as reduced tax rates or cheap rent, usually for specific industries, hoping that hubs for innovation and development will flourish.
  • In the policy circular distributed Friday, central authorities told provinces and cities to stop all support of crypto mining firms, which would include any preferential treatment afforded to companies working in a government tech park.
  • In May, the State Council called on local governments to crack down on crypto mining. Inner Mongolia outlined a plan for shutting down the industry just days later. The latest policy gives a more comprehensive plan for the industry and gives control back to the central government.

UPDATE (SEPT. 27, 9:19 UTC): Adds location of mine, energy consumption, history on China’s ban.

DISCLOSURE

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.

CoinDesk - Unknown

Eliza Gkritsi is CoinDesk's crypto mining reporter based in Asia.

CoinDesk - Unknown

Eliza Gkritsi is CoinDesk's crypto mining reporter based in Asia.

Trending

1
CoinDesk - Unknown
Crypto Derivatives Exchange Bybit to Settle Options Contracts in USDC

The company will be using the second-largest stablecoin by market cap for its relative stability.

CoinDesk - Unknown
2
CoinDesk - Unknown
Polkadot Chief Gavin Wood Announces Blockchain Governance Upgrade

The platform's “Gov2” is set to launch on Kusama “imminently,” following a final professional audit of its code, he said.

CoinDesk - Unknown
3
CoinDesk - Unknown
What It’s Like to Work as a DAO Bounty Hunter

Meet "T Wells," a 30-something former educator who, in 2021, began working for “bounties” (or gigs) in the DAO ecosystem.

CoinDesk - Unknown
4
CoinDesk - Unknown
Luna (LUNA) vs. Luna Classic (LUNC): What Is the Difference?

After the implosion of the Terra network and its tokens, the community approved a plan to relaunch the project, leaving many confused about the new names. Here’s a guide to the two different Terra blockchains and which tokens belong to which.

CoinDesk - Unknown