Saturday 25 September 2021

NDRC Lists CryptoCurrency "Mining" as Industry to Eliminate

Virtual currency "mining" activities refer to the process of calculating and producing virtual currency through special "mining machines". On September 24, the official website of the National Development and Reform Commission issued the "Notice of the National Development and Reform Commission and Other Departments on Regulating Virtual Currency "Mining" Activities." 

CryptoCurrency Mining: More Negative than Possitive

The energy consumption and carbon emissions by cryptocurrency mining are large, while the contribution to the national economy is very low. And the driving effect on industrial development and technological progress is limited. In addition, the risks derived from virtual currency production and trading are becoming more prominent, and its blind and disorderly. Development of cryptocurrency mining will have an adverse impact on the promotion of high-quality economic and social development and energy conservation and emission reduction. Remediation of crypto currency "mining" activities is of great significance to promote the optimization of my country's industrial structure, promote energy conservation and emission reduction, and achieve the goal of carbon peak and carbon neutrality on schedule.

Virtual Currency BitCoin Mining

Strengthen the dual control of energy consumption in the newly-added virtual currency "mining" project. Incorporate the prohibition of new virtual currency "mining" projects into the energy consumption dual control assessment system, strictly implement the energy management and control responsibilities of local governments, and conduct energy dual control assessments in areas where new virtual currency "mining" projects are discovered and verified Calculate energy consumption by doubling the energy consumption of new projects.

Put CryptoCurrency Mining in "Elimination Category" 

List Cryptocurrency mining as an obsolete industry and add it to the "elimination category" of the "Industrial Structure Adjustment Guidance Catalogue (2019 Edition)". 

Strictly restrict the use of telegraphic equipment and energy by cryptocurrency mining enterprises. New virtual currency "mining" projects are forbidden to report for installation and electricity connection, and the telegraphic installation business shall be strictly reviewed. No power shall be supplied to virtual currency mining in any name, and all applications for installation projects shall be stopped. Strictly implement the electric power business licensing system, and strictly prohibit the use of power supply before the network, pull dedicated lines, etc. to supply power to enterprises that newly build virtual currency "mining" projects. Strengthen the supervision of the telegraphic installation business, and conduct random inspections and verification through "double random, one open"scheme and other methods.

Investigate and punish illegal power supply behaviors in accordance with the law. Intensify administrative law enforcement, and resolutely prevent power generation companies, especially small hydropower companies, from supplying power to virtual currency "mining" projects in front of the network or direct power supply through dedicated lines. It is strictly forbidden for virtual currency "mining" companies to develop self-supplied power plants in any form. Unblock the 12398 energy regulatory complaint hotline and other channels, seriously investigate and deal with illegal power supply behaviors, and impose administrative penalties in accordance with laws and regulations. The virtual currency "mining" enterprises that have been verified to use illegal electricity have adopted power cut and curtailment measures in accordance with the law.

Implement differential electricity prices. The virtual currency "mining" project is included in the implementation of the differential electricity price policy, and the "eliminated" corporate electricity price is implemented. The price increase standard is 0.30 yuan per kilowatt hour. The local government can further increase the price increase standard according to the actual situation. Update the list of virtual currency "mining" projects in a timely manner, strengthen supervision and inspection, ensure that the differential electricity price policy is strictly implemented, and charge the virtual currency "mining" companies in time and in full.

Cryptocurrency mining projects are not allowed to participate in the electricity market. Strengthen the supervision of the power market order, strengthen the screening of corporate users participating in the power market, do not allow virtual currency "mining" projects to participate in the power market in any name, and do not allow virtual currency "mining" projects to enjoy the power market concessions in any way. Virtual currency "mining" projects that have entered the power market need to be withdrawn within a time limit.

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