Inner Mongolia’s Chinese provincial government has offered to blacklist the national social credit system to anyone who violates the new decisions regarding Bitcoin mining. Following China’s crackdown on crypto mining, the state wants to punish illegal miners with limited access to financial products and even restrict their travel abroad, local media outlet Weixin reported.
According to the announcement at the 51st meeting of the Council of State Financial Stability Improvement Committee in Inner Mongolia, the blacklist aims to punish internet providers and internet cafes that also support illegal Bitcoin mining in the state. The proposal is called “Inner Mongolia Autonomous Region Development and Reform Commission, Commission for Decisive Settlement and Punishment of Virtual Currency”.
The proposal includes the following statements:
“For organizations such as ‘mining’ projects, virtual currency that provides exclusive access to power sources in accordance with the Penal Code of the People’s Republic of China and other relevant regulations will be transferred to electricity theft bodies.”
The measure also aims to prohibit public officials in Inner Mongolia from directly or indirectly participating in cryptocurrency mining-related activities, which the government calls “illegal sourcing” in mining projects.
Recently, Chinese miners have been struggling to figure out how to sustain their operations over the long term. Beijing’s most recent major crackdown on cryptocurrencies occurred in 2017 when the government banned exchanges from conducting operations within the country and banned ICOs.
Globally, China accounts for almost 70% of the global hash rate, becoming a dominant force in the crypto mining space.