China wants Miners to Submit Monthly Status Reports
China's attention on the cryptocurrency market has definitely led to a lot of decisions, including some bans. Now, it has been revealed that the country is actually turning the focus on cryptocurrency miners. Local media reported that authorities plan on asking local miners to submit monthly status reports.
Apparently, the regulators in the Xinjiang Province have actually issued an official document to inform local bitcoin miners that they now have to submit status reports. These reports will be filed by miners at the time indicated by regulators, which have informed miners of the specific schedule.
A government notice allegedly coming from the regulators in Xinjiang has indicated that miners have to send a first status report before January 5. The authority that signed this notice is the committee in charge with internet finance risks, the Xinjiang Commission of Economy and Information Technology.
The commission will be in charge with keeping information on the operation and the exit intentions of mining companies. The notice from the regulator claimed that mining bitcoin can be both speculative and lead to high energy consumption, thus, the authority will guide miners with the purpose to reduce financial risks.
Mining has developed in two Chinese regions because of low electricity cost
Chinese authorities have previously looked into the bitcoin mining operations functioning in the country, given that many miners decided to operate in two of the country's regions, Sichuan and Yunnan. The main reason why these regions have become popular destinations for bitcoin miners is linked to the fact that here the electricity is quite cheap.
However, Chinese authorities plan on addressing this trend and have previously said that they are looking to impose some restrictions on power consumption. This is another focus area, it seems, for the Chinese authorities, as they will take action when it comes to electricity price, land use and tax to "guide miners' orderly exit."
For the moment, the plans that Chinese authorities have regarding the mining activity taking place in the country do not seem that severe. However, it is yet to see if Chinese authorities will stop here.