China Warns State-Owned Companies To Stop Bitcoin Mining Or Risk Strict Penalties

China has issued a warning to its state-owned enterprises to stop cryptocurrency mining. It also warned that it would increase electricity rates for companies that continue to defy the ban.

This latest warning comes amid the ongoing crypto ban in the East Asian country. Some months ago, the government of China declared all crypto trading activity illegal. Subsequently, crypto miners and exchanges like Huobi and Binance began to relocate to countries with crypto-friendly regulations.

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However, despite the crackdown on crypto, Chinese residents continue to trade Bitcoin. And Beijing authorities are not relenting in their efforts to find ways to prevent crypto use. The Chinese government has also blamed miners for the country’s high energy consumption. In May, during the heat of the crackdown, many large crypto mining farms relocated or stopped operating. Still, some small mining rigs continued to operate.

Last month, Beijing authorities started tracking the IP address of citizens to check for crypto mining activities. Additionally, authorities in Zhejiang province also reportedly began investigating government employees who were illegally mining Bitcoin.

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Despite all these measures, there has not been a significant reduction in energy consumption. This has led officials to intensify their efforts and face state-owned entities.

According to reports, the National Development and Reform Commission (NDRC) plans to clamp down on industrial-scale bitcoin mining. And by extension, all state companies that participate in such activity. A spokeswoman for the country’s chief economic planner, Meng Wei, said this at a press conference on Tuesday.

She also emphasized the unsustainable nature of crypto mining, stating that it consumes lots of energy and produces lots of carbon emissions.

Last week, the NDRC held a special meeting to discuss the crypto ban defiance. And also urged provinces and municipalities to investigate and deal with State-owned enterprises involved in mining.

Beijing continues to reinforce its stance on crypto by going after even government officials. A few days ago, China removed a former Jiangxi government official from his position.

Xiao Yi, a former vice-chairman of the Jiangxi Provincial Committee of the Chinese People’s Political Consultative Conference, was accused of abusing his power to promote and support enterprises against government policies. He engaged in crypto mining and also took bribes, according to the Central Commission for Discipline Inspection.

Xiao is the most senior Chinese official to be punished for his involvement in cryptocurrency mining.