China hires contractor to intensify crypto mining crackdown

To further intensify the monitoring of illegal crypto mining facilities in the country, China’s Inner Mongolia has recently announced hiring a contractor. The commission selected Mengze Engineering Management Limited on September 15, just a week after it opened the bid to the public for nominations. 

With a government budget of USD$46,000, Mengze aims to help the Chinese government establish an intelligence and response unit to pursue crypto miners operating in the shadows. The latest plan was announced shortly after the authorities received reports of Chinese Bitcoin and Ethereum miners covertly resuming their affairs.

This is an indication that China will not lighten its restrictions and crackdown on the crypto mining space anytime soon, further emphasizing its long-term plan to completely eradicate mining operations. 

The bidding document revealed that Chinese Inner Mongolia is looking for specific information on exposing illegal crypto mining facilities, outlining at least ten areas. This includes the production of crypto mining, the energy consumption breakdown of mining hardware and the legal basis for eliminating the operations, among others.

Ever since the start of China’s cryptocurrency clampdown, seven Chinese provinces with a significant number of mining operations have launched a special task force. 

China’s Hebei Province is the latest region to start its crackdown on crypto mining and trading, according to South China Morning Post (SCMP). The reasons for this implementation range from financial and environmental concerns to national security.

‘Mining cryptocurrency consumes huge amounts of energy, which goes against China’s carbon-neutral peak objectives. Its exchange and transaction are highly disruptive to the nation’s financial order, and the financial risk is big. Its proliferation and spread will seriously affect economic and social development, and directly threaten national security,’ Hebei’s cyberspace administration said in a statement.

Environmental concerns have always been the reason behind the country’s ban on crypto mining. This was further intensified by President Xi Jinping’s commitment to making China achieve carbon neutrality by 2060.

With these stricter regulations imposed by the national government, crypto miners are left with no choice but to permanently end their mining operations or risk getting captured by authorities.

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