Inner Mongolia completely shuts down virtual currency mining

The Development and Reform Commission, the Department of Industry and Information Technology, and the Energy Bureau of Inner Mongolia Autonomous Region recently issued the “Several Safeguard Measures for Ensuring the Completion of the “14th Five-Year” Energy Consumption Dual Control Target Task” (hereinafter referred to as the “Guarantee Measures”), clarifying that “comprehensive clearance and shutdown of virtual currency mining” All projects will be withdrawn before the end of April 2021″.

Over 50% profit during the year

As early as half a month ago, when the “Safeguard Measures (Draft for Comment)” disclosed this goal, it received widespread attention. The Paper (www.thepaper.cn) combed and found that under the background of “dual energy consumption control”, it was characterized as a “pseudo-financial innovation that has nothing to do with the real economy” and a high-energy-consuming virtual currency “mining” project. It is difficult to avoid the fate of being cleared.

According to public reports, according to the design of Bitcoin and other virtual currencies, its production is like “mining”, and each computer node uses its computing power (computing power) to grab the right to keep accounts and get Bitcoin rewards. The hardware equipment for mining is called “mining machine”, the individual miner who purchases the mining machine is called “miner”, and the place that hosts the mining machine and provides electricity is called “mine”.

“Mining Farm Owner”: “Mining Machines” began to move

The “Guarantee Measures” was uploaded to the official website of the Inner Mongolia Development and Reform Commission on the afternoon of March 10 and issued on March 9. The notice jointly issued by the Inner Mongolia Development and Reform Commission, the Ministry of Industry and Information Technology, and the Energy Bureau shows that the administrative offices of the leagues, the municipal people’s governments, and the relevant departments of the autonomous region: with the consent of the people’s government of the autonomous region, the “Regarding Ensuring the Completion of the Fourteenth Five-Year” Energy Consumption “Several Safeguard Measures for Dual Control Objectives and Tasks” are issued to you, please implement them conscientiously.

The “Guarantee Measures” mentioned that it is necessary to accelerate the restructuring of energy-intensive industries. In terms of controlling the production capacity of high-energy-consuming industries, it is required to control the scale of data center construction in a reasonable and orderly manner, and it is strictly forbidden to build new virtual currency “mining” projects.

In terms of speeding up the elimination of backward and overcapacity, the “Guarantee Measures” require that industries with overcapacity guide the orderly withdrawal of restricted capacity (equipment) in industries with overcapacity, and implement capacity replacement upgrades. Enterprises (equipment) that are included in the “National Industrial Policy Guidance Catalogue” (2019 Edition) for elimination and stop production for more than one year in 2020 are not allowed to perform capacity replacement. It is specifically implemented in the virtual currency “mining”, requiring a comprehensive clean-up and shutdown of virtual currency “mining” projects, and all exits before the end of April 2021.

The Paper noted that the description of the virtual currency “mining” project in the “Guarantee Measures” is completely consistent with the previous “Guarantee Measures (Draft for Comment)”.

A “mine owner” who has a mine in Inner Mongolia told The Paper News reporter: “Because of the policy, I am going to move in these two days.” Another “miner” who is hosting a mining machine in Inner Mongolia also revealed to The Paper News. This time it is really “must go”, “no electricity can not mine”, most of the “mining machines” in Inner Mongolia he knows have begun to move to Sichuan, Yunnan and other areas with sufficient hydropower.

Started to guide enterprises to exit in an orderly manner 4 years ago

The paper combed through news and found that as early as 4 years ago, the national level sounded the alarm for virtual currency “mining” projects.

A landmark node was on November 20, 2017, Pan Gongsheng, leader of the leading group for the special rectification of Internet financial risks, presided over the rectification work seminar of the directors of the financial offices of key regions. In this symposium, there were responsible comrades from relevant departments of the Central Cyberspace Administration, Development and Reform Commission, Ministry of Industry and Information Technology, Ministry of Public Security, State Administration for Industry and Commerce, China Banking Regulatory Commission, Securities Regulatory Commission, China Insurance Regulatory Commission, Foreign Exchange Bureau and Mutual Finance Association. Beijing, Shanghai, Tianjin, Shandong, Jiangsu, Sichuan , Guizhou, Inner Mongolia, Xinjiang, Shenzhen, etc. 10 relevant provinces and cities’ remediation offices and the people’s bank branch responsible comrades participated.

The meeting mentioned that the relevant provincial and municipal remediation offices believe that the “mining” industry has nothing to do with the real economy and consumes a lot of energy. Some companies have potential safety hazards. Some companies use the “big data industry” as a package to enjoy local electricity prices, land and Preferential policies in taxation and other aspects. Some provincial and municipal governments have taken some measures. For example, some “mining” companies in the Inner Mongolia Autonomous Region have announced the suspension of production under the guidance of the local government.

At the meeting, Pan Gongsheng made arrangements for the next step. Regarding the “mining” industry of virtual currencies such as Bitcoin, the National Financial Work Conference clearly requires that “innovations” that deviate from the needs of the real economy and circumvent supervision should be restricted. Therefore, pseudo-financial innovations that have nothing to do with the real economy should not be supported. In the next step, multiple measures should be taken to comprehensively adopt measures such as electricity prices, land, taxation and environmental protection to guide relevant enterprises to exit in an orderly manner.

One month after the symposium was held, the Office of the Inner Mongolia Internet Financial Risk Special Political Working Group issued the “About Guiding Virtual Currency “Mining” Enterprises in Our District to the Office of Baotou, Ordos, Bayannaoer, and Wuhai City Internet Financial Risk Special Rectification Work Leading Group The “Notice of Orderly Exit” requires that in accordance with the requirements of the National Financial Work Conference and the spirit of the key regional financial office directors of the leading group of Internet financial risk rectification work seminars, limit “innovations” that deviate from the needs of the real economy and circumvent supervision. The virtual currency “mining” industry is a pseudo-financial innovation that has nothing to do with the real economy and should not be supported. Accordingly, please take multiple measures and comprehensively adopt measures such as electricity prices, land, taxation, and environmental protection to guide relevant “mining” companies to emerge in an orderly and rapid manner, and encourage the transition to state-supported cloud computing.

The virtual currency “mining” project has also attracted the attention of local CPPCC members. In June 2019, the Inner Mongolia Local Financial Supervision and Administration Bureau responded to the “Proposal on Establishing the Standards for Defining Cloud Computing and Virtual Currency “Mining” Enterprises” submitted by Duan Meiran, a member of the CPPCC of the Autonomous Region.

According to the reply, the bureau has guided the 15 “mining” companies found in the investigation to comprehensively adopt measures such as electricity prices, land, taxation, and environmental protection to guide companies to withdraw from the “mining” business. As of the end of 2018, 4 companies have gradually withdrawn, and the other 11 companies are still undergoing rectification. In the next step, the bureau will continue to coordinate the research on the guidance and withdrawal of “mining” companies from the economic and information, big data, and taxation departments, and urge relevant alliances and cities to guide such companies to withdraw from the “mining” business. Regarding the standard definition of cloud computing and “mining”, the bureau will cooperate with the economic and information, big data and other departments to do the relevant work.