China Authorities Ban Illegal Mining
July 24, 2018
Local authorities of the China's Xinjiang Uyghur autonomous region are going to fight the activity of illegal miners. The region’s Economic and Information Commission (EIC) has issued a paper to demand utility companies report on incidents of illegal mining and prevent further unauthorized activities with cryptocurrencies.
As the document says, illegal miners are the miners who carry out their activities not as licensed legal bodies and use electricity without official contracts with utility companies. From that moment on utility agencies of the region will have to prevent illegal mining themselves and report on the results by the end of August. Note that non-compliance with the EIC requirements will impose responsibility over utility services of the Xinjiang Uyghur autonomous region.
The regulation of mining in the region began in January when authorities made local utility companies to report regularly on bitcoin mining in the area.
The decision of the local authorities has already had its impact on local miners. The hea of the Canadian startup that mines cryptocurrencies in Xinjiang Scott Meng told in the interview to Coindesk that two his partners appeal to help due to new restrictions and ask for providing assistance to move to North America. This is rather complicated however as both of them own 58,000 mining devices.