Beijing intensifies its crypto mining crackdown in 2024, mandating strengthened monitoring, analysis, and classification of mining activities alongside resolute city-wide rectification according to existing regulations. This raises concerns for local miners and potentially signals broader regulatory measures nationwide.
Tightning The Grip On Crypto Mining
Beijing has issued a directive demanding a renewed crackdown on cryptocurrency mining activities within the city in 2024. This move tightens the grip on miners already facing significant regulatory pressure, and underscores China’s unwavering stance against crypto within its borders.
Article 4 of a notice by 12 departments including the Beijing Municipal Development and Reform Commission on the issuance of Beijing’s implementation plan for further strengthening energy conservation (2024 version) states:
“Censoring virtual currency “mining” activities (18) Implement national requirements, continue to do a good job in rectifying virtual currency “mining” activities, strengthen the monitoring, analysis, and classified rectification of “mining” activities, and resolutely clean up the city’s virtual currency “mining” activities in accordance with laws and regulations. (Responsible units: Municipal Development and Reform Commission, Municipal Network Information Office, Municipal Economic and Information Technology Bureau are responsible according to the division of responsibilities)”
Policy Could Expand Beyond Beijing
The directive outlines a multi-pronged approach: increased monitoring and analysis of mining activities, suggesting expanded data collection and surveillance measures. Additionally, classified rectification implies different categories of mining operations might face varying degrees of scrutiny and intervention. Finally, the document emphasizes resolute crackdowns across all forms of crypto mining within Beijing, adhering strictly to existing laws and regulations.
This escalation creates continued uncertainty for miners in the city, making it even more difficult for them to operate. The impact could extend beyond Beijing, potentially causing ripple effects on the broader Chinese crypto mining industry. The emphasis on “monitoring, analysis, and classified rectification” also hints at the possibility of wider regulatory measures beyond outright bans.
Not Letting Up Soon
Several questions remain unanswered. The specific methods and tools used for monitoring and rectification are unclear. It’s also uncertain whether other Chinese cities will adopt similar measures. Finally, the long-term implications of this crackdown on the development and adoption of cryptocurrencies in China remain to be seen.
One thing is clear: Beijing’s stance against crypto mining shows no signs of softening. This development raises concerns for local miners and potentially signals broader regulatory measures nationwide, with significant implications for the future of crypto in China.