10 days even issued 6 articles why Xinhua News Agency focus on “coin circle”

Within 10 days, Xinhua News Agency issued 6 investigative reports, from mining to trading to financing, covering many important links in the virtual currency industry chain, presenting the current situation of the “coin circle” industry chain to the public and arousing widespread concern.

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On June 2, Xinhua News Agency “Xinhua Viewpoint” column again issued an article
According to the article, dog coins, cat coins, pig coins, eel coins …… “air coins” like air, invisible, untouchable, no physical support, does not have application value. This is the first time that a person has been able to get a job in the industry. Moreover, according to the current judicial practice in China, virtual currency trading contracts are not protected by law, and the consequences and losses caused by the parties concerned are borne by themselves.

The article also points out that the regulation of virtual currency trading speculation activities is not a single regulation of a single department, but a comprehensive approach. Relevant departments should be involved according to their respective responsibilities to implement functional regulation.

If virtual currencies such as Bitcoin are only bought and sold as virtual commodities, the general public has the freedom to participate in the transaction at their own risk.

But if the virtual currency is packaged as a speculative speculation target, attracting investors to the trading platform, it is necessary to tighten the fence of the system and protect the interests of the people.

The hot virtual currency trading and financing market is bound to drive the prosperity of the mining industry chain
In recent months, the word “strict” has been at the forefront of cryptocurrency regulation, and the state has struck hard at the virtual currency trading market. The successive developments have shown that the domestic regulation of virtual currencies is being raised to a new level. One of the regulatory requirements for the mining industry has received a lot of attention.

On May 21, the Financial Stability Development Committee of the State Council held its 51st meeting, emphasizing resolute prevention and control of financial risks, “cracking down on bitcoin mining and trading practices, and resolutely preventing the transmission of individual risks to the social sector.” This is the first time that the State Council has explicitly requested a crackdown on bitcoin mining and trading.

As the “issuing” market for virtual currency, the mining industry is extremely sensitive to electricity prices. The low price of electricity is a necessary guarantee for the owners of mining farms to get a “high return”. As a result, the energy-rich southwest region of China has become the area where the mining industry is concentrated. For a long time, bitcoin mining power has been concentrated in China, and the main force of Chinese mining is in the southwest, in Sichuan and Inner Mongolia.

In order to get cheap electricity and government support and policy subsidies, these mining sites are often disguised as “data centers,” but in reality they are still in the virtual currency mining business. According to the Xinhua News Agency, some of these “mining sites” consume millions of degrees of electricity a day; a “mining site” in a western province can “eat” 45 million degrees of electricity a month; a place in the southwest The power consumption of a “mining farm” in one year is equivalent to the total power consumption of three cities in one year; the power consumption of global bitcoin mining is equivalent to the power consumption of some medium-sized countries ……

Such a high energy consumption of virtual currency mining behavior, not only can not drive employment and tax revenue, pull the development of the real economy, but also with China’s current carbon peak and carbon neutral goals, so has caused a high degree of vigilance of the local government. Since this year, Inner Mongolia Autonomous Region has taken a number of policy measures to clear out virtual currency mining projects, and by the end of April had shut down and retired 35 mining enterprises.

On May 18, the Development and Reform Commission of Inner Mongolia Autonomous Region issued an announcement on the establishment of a reporting platform for virtual currency “mining” enterprises, announcing that in order to thoroughly implement the deployment requirements of the Inner Mongolia Autonomous Region on ensuring the completion of the “14th Five-Year” energy consumption double control target tasks, a comprehensive cleanup and shutdown of virtual currency “mining” projects, give full play to the role of public supervision and protection, comprehensive acceptance of letters and reports on virtual currency “mining” enterprises.

Then on May 25, Inner Mongolia followed up with the release of “Eight Measures to Resolutely Combat and Punish Virtual Currency “Mining” (Draft for Comments)”, which clarifies the measures to combat and punish virtual currency “mining” behavior. Mongolia’s Baotou City Energy Double Control Emergency Command Office also recently issued a “Notice on the acceptance of virtual currency “mining” enterprises, personal issues letter and visit reports”, requiring a comprehensive cleanup and shutdown of virtual currency “mining” project, give full play to the supervision of the masses to protect The company is also a member of the “Virtual Currency Mining” group.

In addition to Inner Mongolia, Sichuan, as the gathering place of mining industry in China, is also closely studying the relevant regulatory measures. on May 27, the National Energy Administration Sichuan Regulatory Office issued a notice on the convening of a research forum on virtual currency “mining”.

The research forum was held on June 2 morning as scheduled, the participants are mainly power grid enterprises, trading centers and power sales companies in charge. It is understood that the meeting mainly collects virtual currency mining on the use of abandoned water and electricity in the demonstration area of Sichuan, as well as the Sichuan power trading center to report the hydropower consumption demonstration area of big data enterprises to participate in market transactions and related recommendations, and assessment and analysis of the possible impact of shutting down virtual currency mining on the amount of abandoned water and electricity in Sichuan this year, but the symposium did not release on how to regulate virtual currency mining in Sichuan However, the symposium did not issue any specific rules on how to regulate virtual currency mining in Sichuan, and no resolution has been formed yet.

However, as Xinhua suggested in its article, combating virtual currency mining requires not only local governments to take the initiative to issue documents calling for a halt to mining practices and cut off incremental volumes; it also requires the introduction of comprehensive measures including electricity tariffs, land, taxation, environmental protection and other aspects to promote the orderly withdrawal of stockpile enterprises.

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