Prohibition of mining after virtual currency transactions

(1) Banning the circulation of digital currency but allowing it to be mined, what is the purpose of this in China?

The Chinese government prohibits the circulation of Bitcoin on all platforms and shuts down all platforms that trade Bitcoin , and believes that Bitcoin is a safe haven for criminal activities such as money laundering.

In addition, Bitcoin will in the near future remove the role of middlemen – such as banks, so that no institution or government can control or monopolize this decentralized currency.

Bitcoin transactions are done in a direct way without any financial intermediaries, that is, Bitcoin can be done directly between buyers and sellers without the need for a third party or other traditional paper money as intermediary. Therefore, Bitcoin will pose a major threat to the banking system.

The Chinese government allows Bitcoin mining based on two characteristics. According to a report released by Bitooda, a cryptocurrency specialist company, China has become a fertile ground for global cryptocurrency mining and accounts for more than 50% of the total global mining volume.

It is reported that the value of one bitcoin is currently equivalent to 31,000 US dollars, which means that China has obtained huge profits from the mining process. Therefore, it can be said that the Chinese government is treating Bitcoin in a way that is in its national interest, while also safeguarding the digital renminbi from any competitors. This shows that China is full of wisdom and rationality when it comes to Bitcoin, and makes it in the national interest.

㈡Is virtual currency mining illegal?

Legal analysis: At present, my country has not officially promulgated relevant laws, so virtual currency mining is not illegal, but it should be noted that my country We do not support virtual currency mining. As far as the current policy is concerned, it is inevitable that my country will ban virtual currency mining.

Legal basis: “Notice of Qinghai Provincial Department of Industry and Information Technology on Carrying out the Cleanup and Rectification of Virtual Currency “Mining” Projects Completely shut down all existing virtual currency “mining” projects.

Second, resolutely investigate and rectify the main body of the project that is engaged in virtual currency “mining” in the name of big data, supercomputing center, etc. It is forbidden to provide venues and power support for virtual currency “mining” behavior.

Three. In the later stage, inspections and spot checks will be carried out on the situation of cleaning and rectification. Please prepare relevant materials well.

(iii) New virtual currency mining projects are strictly prohibited in Inner Mongolia. This is why

First of all, the overall goal of the energy consumption dual-control switch in our district in 2021 is to reduce the GDP energy consumption of enterprises by 3 %, the increase in energy consumption is controlled at around 5 million tons of coal consumption, the growth rate of total energy consumption and output is controlled at around 1.9%, and the energy consumption (and other use value) of the total industrial output value of enterprises is reduced by more than 4%. Dissolve and issue the targets and tasks of energy-consuming dual-control switches in 2021 in each league and city. After the General Office of the State Council announces and issue the overall goal of the autonomous prefecture’s 14th Five-Year energy-consuming dual-control switch, it will be immediately dissolved and distributed to all leagues and cities. Strengthen the hazard assessment of energy-consuming dual-control switches in the 14th Five-Year Plan and the source of energy consumption index values ​​for newly created high-energy-consumption new projects. For new high-energy-consumption projects that fail to implement the energy consumption index values, environmental protection and energy saving verification will not be approved.

Implementation of energy-consuming dual-control switch detection and early warning information and consultation and production scheduling system, implementation of monthly summary testing and first quarter early warning information. Implement the emergency plan for the energy-consuming dual-control switch in the autonomous prefecture, immediately carry out early warning information on the areas behind the overall target of the energy-consuming dual-control switch, and operate the emergency response system. Improve the basic construction and application of online energy consumption detection system software for key energy-consuming enterprises. Unify the competent authority for verification of environmental protection and energy conservation. Improve the environmental protection and energy conservation supervision team and capacity building, and create a unified whole-society development environmental protection and energy conservation supervision organization in our district. Strengthen the supervision and management of the implementation of environmental protection and energy conservation policies and regulations, and strictly investigate and punish individuals who violate the regulations and violate the regulations and use energy. The municipal government should continuously improve the education investment guarantee system in the work of the energy-consuming dual-control switch.

(iv) Qinghai Province issued a document to completely shut down virtual currency “mining” projects, what are the risks behind virtual currency

Qinghai Province issued a document requesting a complete shutdown of virtual currency mining projects , Virtual currency is inherently risky, especially in financial transactions, I have seen many people, but when this virtual currency goes up, it goes up really fast. It becomes 15,000, which is more exciting than playing stock funds, but when you lose money, it is really a loss.

Virtual currency has no real purchasing power in the first place. This is a problem, because the financial investment industry is most prone to bubbles. Once the financial market has a problem, it will sweep the real industry. During the 2008 financial crisis, it was It has something to do with the real estate bubble, the subprime mortgage crisis, there are too many loans, and it has something to do with the financial market. If virtual currency is not curbed, it will also lead to financial problems.The market is in trouble.

(v) What is the background of Inner Mongolia’s suspension of the virtual currency “mining” project?

Financial technology expert Su Xiaorui also said that Inner Mongolia’s suspension of the virtual currency “mining” project, It is a strategic measure based on the background of the “14th Five-Year Plan” energy consumption dual control. The eight measures this time fully reflect the resolute attitude of the local government, and the various entities targeted and the corresponding punishment measures are very clear, including but not limited to revocation of licenses, transfer to agencies, etc. The prohibition of “mining” in Inner Mongolia has long been expected, and corresponding cleaning and rectification work has also been carried out before.

It is worth noting that a recent investigation by a reporter from Beijing Business Daily found that due to its small size and strong concealment, it has also found a living space for retail investors to “mining”. At present, there are still many individuals and businesses, including Internet cafe operators who use computers equipped with high-performance graphics cards to “mine” and speculate coins at the same time; For business merchants, after the regulation cracked down on “mining”, the hard disk sales business was affected, so the merchants began to study “mining” and speculate on their own.

In response to this phenomenon, a reporter from Beijing Business Daily noticed that, unlike the previous crackdown on companies involved in the “mining”-related industrial chain, the eight measures this time will make Internet cafes and the existence of virtual currency “mining” different. The individuals involved in the conduct are also included.

Among them, if there is virtual currency “mining” behavior on Internet cafes and other entities, the competent department shall suspend business for rectification and other disposals in accordance with laws and regulations; Relevant personnel shall be included in the untrustworthy blacklist according to relevant regulations.

The significance of the upgrade of virtual currency mining supervision weights:

Following the comprehensive acceptance of petition reports on virtual currency “mining” enterprises in Inner Mongolia, the State Council Financial After the Stability and Development Committee deployed to crack down on Bitcoin mining and trading, on the evening of May 25, the Inner Mongolia Development and Reform Commission once again issued the “Eight Measures on Resolutely Combating and Punishing Virtual Currency “Mining” (Draft for Comment)”.

In the opinion of Xiao Sa, director of the China Banking Law Research Association, the introduction of eight measures in Inner Mongolia has implemented my country’s policy of cracking down on virtual currency “mining”. The “mining” of virtual currency has high energy consumption and large carbon emissions, which is not conducive to the realization of my country’s environmental protection goals.

At the same time, in the past, some companies used the country’s preferential electricity and free electricity policies to mine and steal national interests in disguise. The eight measures this time explicitly crack down on such behaviors, which fully safeguard national interests and are of practical significance.

For the above content, please refer to currency mining supervision weight upgrade Internet cafes, personal mining behavior is also punished

㈥ Will the country ban virtual currency mining

Virtual currency mining has been banned.

The country will reach a peak in carbon emissions in 2030. The daily mining of Bitcoin and Ethereum uses thermal power generation, that is, the use of fuels such as coal to generate electricity, and the power consumption is very large.

The country now advocates energy conservation and emission reduction. At present, the power consumption of bitcoin has caused great pollution to the environment, and thermal power generation will produce A large amount of carbon dioxide, too much carbon dioxide will accelerate global warming, accelerate the melting of polar glaciers, shrink the territories of coastal countries, and reduce the habitable area of ​​human beings. This is the fundamental reason why the country banned Bitcoin, Ethereum.

The National Finance Commission is cracking down on low-energy mining. Secondly, the national electricity subsidy disguised as cloud computing centers and IDC computer rooms is a kind of energy-consuming mining.

㈦ How serious is virtual currency mining illegal?

Virtual currency mining is not illegal, but it is not protected by law.
Currently my country has not officially promulgated relevant laws, so virtual currency mining is not illegal, and my country does not support virtual currency mining. As far as the current policy is concerned, it is inevitable that my country will ban virtual currency mining. Criminals may take advantage of the transactional characteristics of virtual currency as a money laundering tool.
According to relevant laws and regulations, it is strictly forbidden to establish and approve various virtual currency “mining” projects in various regions, and all existing virtual currency “mining” projects are completely shut down.
Resolutely investigate and correct the main body of the project that is engaged in virtual currency “mining” in the name of big data, supercomputing center, etc. It is forbidden to provide venues and power support for virtual currency “mining” behavior.
In the later stage, inspections and spot checks will be carried out on the clean-up and rectification. Please prepare relevant materials well.
According to the notices and announcements issued by the People’s Bank of China and other departments, virtual currency is not issued by the monetary authority, and does not have currency attributes such as legal compensation and mandatory. It is not currency in the true sense and does not have the same legal status as currency. , cannot and should not be used as currency in the market, and citizens’ investment and trading of virtual currency are not protected by law.
The People’s Republic of ChinaArticle 3 of the Anti-Money Laundering Law: Financial institutions and specific non-financial institutions that are required to perform anti-money laundering obligations shall take preventive and monitoring measures in accordance with the law, establish and improve anti-money laundering internal control systems, perform customer due diligence, and keep customer identity materials and transaction records. Anti-money laundering obligations such as reporting of large-value transactions and suspicious transactions, and special anti-money laundering precautions.
Article 4 Units and individuals shall legally cooperate with financial institutions and specific non-financial institutions in customer due diligence to perform anti-money laundering obligations, and cooperate with anti-money laundering investigations; perform obligations such as reporting huge cash receipts and payments, and special anti-money laundering preventive measures. ; shall not facilitate illegal and criminal activities such as money laundering.
Article 6 Units and individuals shall keep confidential the customer identity information, transaction information and anti-money laundering investigation information obtained from fulfilling their anti-money laundering obligations in accordance with the law; they shall not provide them to any unit or individual unless required by law.
Relevant state organs, departments and institutions shall protect state secrets, business secrets and personal privacy in accordance with the law when using anti-money laundering information.

㈧ The National Development and Reform Commission requires a comprehensive rectification of virtual currency mining behavior, what impact will “mining” behavior have on the economy

“Mining” wastes resources/waste Energy, and does not produce actual benefits. The same resource input may produce more industrial and agricultural products and services. “Mining” only produces virtual digital coins. In fact, these “coins” are of no use to ordinary people. , so “mining” is banned by more and more countries.


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