As a result of failing to meet the energy-saving targets in 2019-20, the interior authorities of the Chinese Sovereign state, Mongolia, are seeking to stop all the crypto mining projects in the state.
Mongolia’s National Development and Reform Commission, or NDRC, has proposed to start a strict crackdown against all the local crypto mining companies. In an official notice, released on February 25, all the new projects regarding digital currency mining will be banned, and public feedback will be collected by March 3, 2021. The proposed notice will be remaining under consideration until the evaluation of public response or the modification of language by the NDRC. Mongolia has been nominated in the territories that have failed to meet the energy-saving targets in 2019-20 due to the presence of intensive energy consumption industries. Undoubtedly crypto mining industries have been found to be on top of the list. In order to meet the economic aims for the next five years financial action plan, the authorities are planning to cut the per-unit amount of consumed energy by 3%, from the level in 2020. For this purpose, the higher authorities are going to target every digital mining industry of the territory.
Mongolia-A Hotspot for Crypto Mining
Eventually, due to the low prices of electricity in Mongolia, the state has been seen as a hotspot for mining crypto assets. Due to government-subsidized availability, the utilization of energy has risen to 65 million tons, where, in the recent proposal, Mongolia aims to limit its energy utilization to 5 million tons. Mongolia has been designated as the third largest region in China, with the highest number of crypto mining farms ultimately relying on native fossil power plants and draining tones of energy.
The native crackdown is bringing the old fears back. This is not the first time when the interior authorities are planning to stop the crypto mining projects. The local government authorities have been forbidding digital miners since 2017. Similarly, in August last year, they cut off the electricity supplies of 21 crypto mining farms, including the Bitcoin mining farms of Ebang and Bitmain- the miner makers of Bitcoin.