As reported by a local media, Mongolia will put a stop to subsidies in the mining sector, precisely at a time when several mining farms had established their facilities in that area.
The notice entitled “Notice on the control and rectification of enterprises involved in cryptocurrency mining” states that the competent authorities, and to be precise the financial office, the office of the Ministry of Industry, the Commission for Development and Reforms, the big data office and the Department of Public Security, have found that the mining sector does not help the development of the local economy, stating that this innovation defined by them as “pseudo-financial” is not related to the real economy and should not, therefore, be supported.
Mongolia will instead focus on cloud computing, big data and blockchain. During this month a report will be produced directly by the Ministry of Industry and subsequently, the various departments will carry out a check to supervise it.
It should be noted that China, despite allowing very low costs for mining farms, does not view them in a positive light, citing reasons related to environmental damage and Mongolia is also moving in this direction.