Besides the treatment of cryptocurrencies themselves in several parts of the world, it is rather interesting to see just how crypto mining is regulated within different parts of the globe. For example, China as a country has banned cryptocurrency use but the mining of crypto continues to be a thriving niche market within the country and even as the country is looking towards releasing its own national cryptocurrency, the topic of how mining and mining-related activities will be treated is still on the table and has not been fully hashed out.
In the Chinese province of Mongolia, however, regulators are tightening their grip on the sector and intends to dispatch inspectors who will ensure the cleanup and rectification of crypto mining companies within the region.
In a November 13, 2019 report, it was stated that the businesses that will be targeted as part of this new cleanup effort are those businesses that are apparently not relevant to the larger economy. This includes also companies that have received some favorable government policies such as with electricity rates, tax benefits and those who are pretending to be contributing to big data.
Back in September 2019, the local government within Mongolia issued a statement demanding the cleanup of cryptocurrency mining firms within the region and apparently, five departments also felt the need to rectify the industry. According to official documents, crypto mining is considered an activity that is associated with a pseudo-financial industry and should not be encouraged within Mongolia.
The methodology and the immediate effects of these new inspections are not known at the moment but it has been said that many who are prominent within the local mining sector have already moved to other countries ahead of the new inspections.
“Most people I knew who worked in the domestic crypto token industry have already shifted their businesses to Southeast Asian countries like Singapore. They felt that the crypto token market has come to an end in China,” said Yang Wang, a senior research fellow with the Fintech Institute of Renmin University of China.