Mongolia has banned cryptocurrency mining and announced that it will close all these projects by April. This has raised concerns that China will take further steps to eliminate this aspiring exercise of power. .


According to ArabiaNet, the autonomous region, the preferred region for the industry due to the cheapness of electric energy and the cold weather that helps cool down exploration equipment, has banned new digital currency projects, according to a draft published on the website of the Development and Reform Commission in Inner Mongolia on February 25, with the aim of restricting Growth in energy consumption to about 1.9% in 2021, according to Bloomberg and seen by Al Arabiya.net.

Bitcoin expanded its gains on Monday amid reports of the move, rising 6% in the session to $ 47,970.


The announcement sparked nerves in an industry that had already gone through a years-long Chinese campaign to crack down on concerns about speculative bubbles, fraud and wasted energy.


It is reported that the draft was released weeks after China's largest economic plan criticized Inner Mongolia for being the only province that failed to control energy consumption in 2019.


The region now aims to cut emissions per unit of GDP by 3% this year and limit additional energy consumption growth to around 5 million tons of standard coal, according to the draft plan.


Chinese officials first outlined proposals in 2018 to discourage cryptocurrency mining, a computing process that makes transactions in virtual currencies possible but consumes massive amounts of energy.


Inner Mongolia, which is home to large coal mines, is known for its cheap energy and has attracted investment from a large number of energy-intensive sectors such as aluminum and ferroalloy smelting over the past decades.


The region has captured 8% of the global bitcoin mining computing power, according to the Bitcoin Electricity Consumption Index compiled by the University of Cambridge.


China, in turn, generally possesses more than 65% of the total grid, with its attractive mix of cheap electricity, local chip manufacturing plants and cheap labor.


TSCM, and Navidia are among the chip manufacturers supplying crypto miners in China and around the world.