Inner Mongolia Proposes Social Credit Blacklisting For BTC Miners

Inner Mongolia proposes a social credit blacklisting method for all Bitcoin miners as a part of the new rules for mining in China as we read more in our latest crypto news.

After the latest news on the Government crackdown in china against Crypto, the Inner Mongolia province proposes a social credit blacklisting method for those that will mine Bitcoin. All illegal BTC miners will have to face limited access to financial products and blocks to foreign travel as well. The report indicated that the punishment will be applied to both individuals and service providers, internet companies, and internet cafes.

BTC mining became a very popular activity lately due to the high price of crypto and in exchange for running energy-intensive computing rigs, the people that help secure the network can earn rewards in BTC for verifying the transactions. The probability of earning the rewards is proportionate to the total processing power of the BTC network or known as the hash rate.

A mining operation that commands huge amounts of the network hash rate will enjoy a bigger amount of the rewards but this activity consumes a huge amount of energy and has been at the center of the heated debate around the asset’s greener future. Just yesterday, Tesla’s CEO Elon Musk tweeted that he spoke with North American BTC miners while trying to address the concerns. Musk’s comments were followed by a statement from Michael Saylor of MicroStrategy, in which he said that he helped to organize a meeting between Musk and a few other people that are heads of American mining companies.

In the meantime, China is taking a different approach to address environmental concerns. Thanks to the cheap energy available in certain provinces, Sichuan, Xinjiang, and Inner Mongolia became the main spots for BTC mining. The energy was coal-fueled and it is one of the reasons why the crackdown on mining started. Inner Mongolia is the first provide in China that responded to Beijing’s request last week and at that time, the committee in Beijing included BTC mining in the list of financial risks that they will monitor. This is also not the first time that Inner Mongolia tried to curb BTC mining, as back in March it announced a ban on the activity as a  part of the mission to become carbon neutral by 2060.

Source: https://www.dcforecasts.com/bitcoin-news/inner-mongolia-proposes-social-credit-blacklisting-for-btc-miners/