China’s Had Enough
In really positive news, China has now had enough of illegal Bitcoin mining and has penned a policy to ensure it is stamped out within the next few months.
The Xinjiang Uyghur autonomous region in China has chosen the end of August as a deadline to get rid of the illegal activities. The government – the Economic and Information Commission (EIC) – has informed and has been working with power suppliers asking them to name and shame Bitcoin mining farms. The word “illegal” has been clarified as an operation which has not been legalised i.e. has not signed a contract with a power company to mine or has not registered itself as a business with the government. It is therefore very black and white as to what is legal and what is not. There are no grey areas. The government has also empowered utility companies with actually closing down any illegal companies and then reporting the necessary details to the government. The government has taken this a step further and has indicated that said utility companies will actually be responsible if illegal mining is not stopped in the region.
The Planning Process
This hard work and project started at the beginning of the year with the EIC asking all power suppliers to gain information on illegal farms in the area. This was with the aim of wiping them out in the summer. And mining has already seen the effect of these changes with miners screaming out for new places to mine across the world. Some will head to the USA whilst others will try out Kosovo and Iceland which seem to be the fashionable places at the moment.
Before all of this happened, back in the summer of 2017 the EIC distributed warnings to local governments warning them of the dangers in letting illegal Bitcoin mining taking place in their jurisdiction. So it has been a while in coming.
G20 Joins In
On the back of this, the G20 is also knuckling down on hacking and illegal activities this year. Member countries of the G20 have all agreed on a decision to take more note of the activities taking place in the Cryptocurrency industry and take a much tougher stance on money laundering. An Anti-Money Laundering standard is already being reviewed ready for launch in the Autumn.
A recent meeting saw the G20 countries seek advice from the Financial Action Task Force asking how their current Anti-Money Laundering protocol could incorporate Cryptocurrencies over the next three months. The standards will also cover Cryptocurrency exchanges which is a bold but very necessary move.
There is a lot of urgency from G20 now as members become increasingly frustrated with the negative sides of the Cryptocurrency industry and the amount of money being lost each year. Drastic moves are therefore being made.
It is wonderful to see countries and powerful entities such as G20 laying down the law and getting rid of the illegal side of Cryptocurrencies. This will not only improve the industry as a whole but it will provide the necessary confidence for investors and the public alike to become involved with this new digital economy and technology.