China to tighten clampdown on virtual currency mining

National Development and Reform Commission of China, on Friday said the country would step up its crackdown on virtual currency mining as part of the nation’s efforts to save energy and cut carbon emissions.

A report published by the commission on Friday said the virtual currency mining is energy-intensive, produces high carbon emissions and contributes little to the economy.

The report said the country would intensify regulation over the whole process of virtual currency mining and strictly prohibit new mining projects.

It added that banning new virtual currency mining projects would be regarded as a criterion for assessing government performance in saving energy and such activities should be eliminated.

“Efforts should be made to differentiate between virtual currency mining and other digital industries such as blockchain, big data and cloud computing.’’

It also stressed that publicising virtual currency mining in the name of developing digital economy must be banned.

It stated that power generation companies are not allowed to provide electricity to virtual currency miners and any form of fiscal or financial support for launching new virtual currency mining projects will be prohibited.

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