China to crack down on illegal Bitcoin Mining activity by September

Xinjiang Uyghur is an autonomous region in China which is home to many Bitcoin mining operations. Not all of these Bitcoin mining operations are legal. This is the reason why the authorities are finally decided that by the end of August, the illegal mining activities will be curbed.

The economic and information commission has issued a government notice asking the local utility companies to report any mining operations which they know about. Moreover, it has given the power to the local utility companies to shut down the mining operations as well.

What is an illegal Bitcoin mining operation?

Any mining operation which is not directly registered with the government can be considered as a legal mining operation. Also, mining operation which does not have a formal commercial contract with the utility company can also be considered as an illegal Bitcoin mining operation. This is one of the main reasons why there are quite a few unlicensed mining operations as well.

It remains to be seen whether the crackdown will actually happen or not. Some of the other countries are already attracting the cryptocurrency mining operations in the hope that they will be able to generate employment for the local citizens. It remains to be seen whether China cracks down fully on these illegal mining operations are not.

At the same point in time, discovering these mining operations is not an easy task as well. This is one of the main reasons why it is important to take into account the future developments in this regard.

Already, quite a few cryptocurrency mining operations are moving away from China. They are looking at other countries which provide a more favorable business atmosphere. That is why many of them might voluntarily shut down as well. If they voluntarily shut down, the employment which is generated by the Bitcoin mining operations will reduce as well. This will mean that there will be need for more jobs in the rural areas in China.

Thus, it remains to be seen whether China actually follows up on the steps and reduces the cryptocurrency mining operations. In most of the cases, this can be a move to make the cryptocurrency mining operations more compliant with the rules and regulations so that it becomes easier for the authorities to keep track of the cryptocurrency mining operations. When they are able to keep track of the cryptocurrency mining operations, it will become easier for the authorities to check the spread of cryptocurrencies.