China, fight against illegal mining activities
China, fight against illegal mining activities

China, fight against illegal mining activities

By Fabio Lugano - 25 Jul 2018

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The coal-rich region of Xinjiang wants to reduce pollution. And announces that from August they will begin to close illegal mining activities.

The Xinjiang autonomous region of northwest China has decided to begin a relentless fight against illegal mining activities, according to an internal memorandum that has just been filtered out.

To this end, it gave a mandate to the national electric power company to monitor consumption and record the mining activities in the coming weeks that take place in the area by August 30, so that the administrative authorities can check the authorizations and compliance from the fiscal point of view and the social and corporate obligations.

The region is rich in hard coal and therefore offers an energy supply at low prices, but it is an energy with a particularly negative environmental impact.

This is happening at a time when China is trying to move towards less polluting energy sources and is closing 103 coal-fired plants.

In this new environmental vision, any activity not strictly necessary for the well-being of citizens is seen as harmful and need to be suppressed.

Since the beginning of the year, the BPOC had attacked the mining activities carried out in the country, regarded as a waste of energy, but still now about two-thirds of the processing activities related to cryptocurrencies are carried out in the country of the Great Wall.

Bitmain, the main pool for the creation of Bitcoin is Chinese and for months has been outsourcing its mining activities to other countries.

These initiatives will make an orderly and progressive withdrawal of data processing from Beijing increasingly likely, with positive repercussions for a country with an environmental record.

Fabio Lugano

Graduated with honors from Bocconi University, Fabio is a consultant for companies and wounded shareholders of the Banche Venete. He is also the author of "Scenari Economici", and lecturer and analyst of cryptocurrencies since 2016.

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