China opened hunt for “underground” cryptocurrency miners

In the framework of the Cryptocurrency Campaign, Beijing opened the hunt for illegal miners, which give themselves to the processing and storage specialists. This is reported by Bloomberg with reference to awareness sources. The reason for the persecution of miners was the lack of electricity in the country on the eve of winter cold.

In September in colleges, research institutions and centers of data processing of China, inspections aimed at finding and preventing the “underground” mining of cryptocurrencies. The authorities are trying to reduce the amount of mining, as in April, it accounted for 46 percent of the global computing power used in the mining and processing of cryptocurrency operations.

After the ban on the production of digital money in July, many miners left the Chinese, but some decided that they would be able to escape from government supervision, going to mining less well-known tokens and using decentralized storage technologies. Anonymous Chinese Mainer said that he continues to operate, since it regularly moves its equipment, connecting no more than 100 farms (special computers) in one place. Because of this, regulators are more difficult to identify sharp “bursts” of electricity consumption.

In the Chinese province of Hebei, local authorities demanded that companies and state institutions do not use their computing systems for cryptocurrency and independently conduct internal checks until September 30. The local regulator said that the increase in the volume of mining “will seriously affect economic and social development and will create a direct threat to national security.” The provincial authorities added that the increase in energy consumption associated with the work of farms does not correspond to the goals of China to reduce emissions, and the cryptocurrency trade undermines financial stability. And the autonomous region inner Mongolia has already hired a contractor to organize the process of liquidation of mining.

The Chinese government announced that next month will launch a mechanism for tracking computer activity in the country. Officials responsible for data systems in which illegal mining will be found will be punished, and the corresponding Internet connections are disabled.

Legislative prosecution of miners in China began in May of this year. At the end of June, the People’s Bank of the People’s Republic of China ordered local companies and payment systems to stop cryptocurrency transactions, and in July, China’s state energy corporation has banned the use of electricity to produce digital money in all regions of the country. So mining in China became completely illegal. After that, the price of bitcoine and global computing power dropped sharply.

/Media reports.