In the context of the regulatory decree that requires a comprehensive rectification and clean-up of virtual currency hype and “mining” activities, the National Development and Reform Commission has recently reiterated the strict crackdown on virtual currency “mining”, and various provinces and cities are cracking down on related illegal activities in their jurisdictions. .
On November 18th, a reporter from Beijing Commercial Daily noticed that there were endless advertisements on the public social platforms such as “Mining machine spot, affordable price” and other advertisements. Among them, there were many new products from leading mining machine vendors, and some users took the initiative to publish mining machine purchase information. .
A reporter from Beijing Business Daily found that although the regulatory agency did not explicitly prohibit the production and sale of mining machines, many institutions no longer provide mining machines to mainland customers. Some analysts also bluntly said that since “mining” in the mainland has been strictly prohibited, it is illegal to buy and sell mining machines in China that have a single purpose and function and can only be used for virtual currency “mining”.
Second-hand transactions carry risks
After the “mining” activity was completely suspended, the mining machine as a “mining” tool also opened the way of overseas migration under the tide of mine closure and clearing.
“All kinds of mining machines on the market at affordable prices, welcome to buy them”, “Home silent mining machines, available in seconds, you deserve to have” “A large number of mining machines, available in seconds, real orders can be discussed” “Sell all kinds of mining machines Need Didi”… On November 18, a reporter from Beijing Commercial Daily noticed that on the public social platform, there were still many users posting mining machine advertisements.
Image source: Baidu Tieba
In the relevant advertising posts, the products on sale include top brand mining machines of different usage levels, as well as electronic products such as graphics cards and hard drives, which claim that they can all be used to implement “mining” activities. However, the sources and selling prices of mining machines have not been disclosed.
Li Sen (pseudonym), a mining industry practitioner, told the Beijing Business Daily that after the “mining” was fully rectified, domestic mines were shut down one after another. Institutions with the strength and conditions chose to “go out to sea” and reopened overseas mines. Most small and medium-sized institutions have nowhere to go and can only process machines in the country. There are also more cases of circulation of various types of mining machines in the second-hand market.
In the relevant advertising posts, there are also new mining machine products to choose from. Li Sen pointed out that since 2021, due to factors such as market demand and chip shortages, the production of leading mining machine manufacturers is extremely short, and brand-new mining machines do not need to be sold in such markets at all, and can create more value through other channels. . “At the same time, the mining machine itself is a consumable, and the performance of these mining machines from unknown sources cannot be guaranteed. It is likely that they have changed hands many times.”
A reporter from Beijing Business Daily also obtained confirmation from a leading mining machine manufacturer that for such products from unknown sources, if the reporter cannot provide accurate information on the original product order, even the company’s products will not be able to enjoy fault repairs, etc. After-sales service.
In addition, in the relevant advertising posts, there are users who played the gimmick of “Home Blockchain Computer”, claiming that it has low energy consumption and small size. It is specially developed in response to national policies and can participate in the mining of multiple mainstream currencies. In the eyes of many business people, this concept is more like “killing pigs.” Li Sen is even more blunt. Based on the principle of “mining” operation, the mining machine itself has high energy consumption and high noise, and it is impossible to use it in the home.
Image source: Baidu Tieba
Compliance of buying and selling mining machines to be solved
Since the mainland market has completely withdrawn virtual currencies and rectified mining activities, news of the currency circle and mining circle organizations going to sea and the withdrawal of users in the mainland has been frequently reported.
Bitmain, the world’s largest mining machine manufacturer, issued a statement on October 10th that starting from October 11th, its Antmining machine will stop shipping to mainland China. The adjustment of this shipment policy does not affect Bitmain’s overseas market customers. For customers in mainland China who have purchased long-term products, Bitmain said it will contact them to provide alternative solutions.
On November 18th, a reporter from Beijing Commercial Daily also interviewed Bitmain regarding the reasons for the suspension of shipments to the mainland, and the progress of the implementation of the purchased customer alternatives. However, as of press time, no receipt has been received. The other party replied.
A reporter from Beijing Business Daily has learned from many sources that under the influence of multiple factors such as market demand, regulatory policies, and the human environment, leading mining machine manufacturers have already begun business adjustments earlier. Although the regulatory agencies have not explicitly stated that the production and sale of mining machines are prohibited, and some institutions have not made public statements to the outside world, many institutions have no longer sold mining machines to mainland users. According to relevant sources, overseas “mining” compliance areas, market areas have diversified characteristics, small regulatory interference factors, and strong partners have strong performance capabilities, and are often more favored by mining machine manufacturers.
Regarding the issue of whether it is legal to buy and sell virtual currency mining machines in China, on November 18th, reporters from Beijing Commercial Daily also conducted various understandings. According to Li Ya, a lawyer at Beijing Zhongwen Law Firm, from the perspective of the entire computing power market, the mainland has always been the center of mining machine production. With the supervision of “mining” and currency speculation, the mainland has drawn a red line. The demand for mining machines has almost returned to zero, which has accelerated the overseas deployment of mining machine manufacturers.
“As far as buying and selling mining machines are concerned, mining machines are commodities, and commodity trading should be protected by law. Even if it’s a second-hand transaction, sellers must truthfully explain it.” Li Ya pointed out, “Buying and selling mining machines is like buying computers and graphics cards. , Hard disk, will not involve illegal issues. But the risk of buying and selling mining machines lies in its conductivity. The purpose of buying mining machines is mining, and mining is illegal, so it is very likely to be involved in the identification of illegal activities. .”
Xiao Sa, a partner of Dacheng Law Firm, believes that since “mining” in the mainland has been strictly prohibited, it is illegal to buy and sell mining machines in China that have a single purpose and function and can only be used for virtual currency “mining”. It was determined to be a direct violation of the “Notice on Regulating Virtual Currency “Mining” Activities”, “It is prohibited to develop virtual currency “mining” projects in any name”.
Xiao Sa said that based on my country’s carbon neutral and carbon peak environment and the “9.24 series of regulations and policies”, while referring to the current practice of domestic e-commerce platforms and second-hand trading platforms that have completely removed and shielded similar commodities such as mining machines, The sales of mining machines by customers in China may be recognized as administrative violations by law enforcement agencies, and relevant institutions may face administrative penalties or even constitute a crime.
“However, it is not appropriate to use criminal laws to regulate mining machinery sales. The criminal laws and regulations should follow the most basic principles of statutory crimes and punishments. Actions that are not expressly stipulated as crimes cannot be regarded as crimes. Unless it is extremely serious to the society and causes major losses to public and private property, Or there are other extremely serious mining machine buying and selling behaviors, otherwise it is not appropriate to criminally evaluate the purely buying and selling mining machine behaviors.” Xiao Sa added.
Prevent the resurgence of “mining”
Judging from the current business trends of leading mining machine manufacturers, relevant institutions have increased their overseas deployment of mining machine sales and self-operated “mining” businesses. In terms of the mining machine sales business, a person close to the leading mining machine manufacturer introduced to the reporter of Beijing Business Daily that according to the information they have learned, the regulator has not currently proposed rectification requirements for the leading mining machine production organization, and the relevant institutions have changed Most of them have made business adjustments based on market demand.
“Even from a layman’s point of view, under the background that’mining’ activities are fully halted, mining machine manufacturers take the initiative to adjust the scope of their business, rather than passively implement them after the policy is down. This is a decision that is more conducive to the company’s operation.” The aforementioned person pointed out.
Li Sen also repeatedly stressed to reporters from Beijing Business Daily that legal and compliance exhibitions are also the basis for the survival of mining machine manufacturers. Previously, the mining machine production industry was a mixed bag, and even some institutions promoted “mining” profits, developed a large number of offline to attract users to buy mining machines, or cheated users in the name of mining machine production. “After the introduction of regulatory policies, such behaviors will also be eliminated, allowing the industry to return to benign operations.”
No matter how the overseas mining machine manufacturers “fight” to grab market share, the end of domestic “mining” is a foregone conclusion. However, on public social platforms, in addition to advertisements for the sale of mining machines, many users also actively post to purchase mining machines of various brands, and openly consulted on issues such as “how to find new mining channels after mining is prohibited by regulatory policies”.
Image source: National Development and Reform Commission official website
At a press conference held by the National Development and Reform Commission on November 16, Meng Wei, the spokesperson of the National Development and Reform Commission, reiterated the harmfulness of “mining” and emphasized that the next step is that the National Development and Reform Commission will focus on industry. “Mining”, state-owned units involving “mining” and Bitcoin “mining” are the focus of comprehensive rectification. For units that implement residential electricity prices, if they find that they are involved in virtual currency “mining” activities, they will study the imposing punitive electricity prices on them, forming a high-pressure situation that continues to rectify virtual currency “mining” activities.
Provinces and cities have also accelerated the rectification of virtual currency “mining” behavior, from comprehensive investigations to setting up reporting channels to prevent the resurgence of “mining” activities in the country is slowly opening up. Xiao Sa bluntly said that from the relevant regulatory documents, “mining” has no way to go in China, and virtual currency “mining” will return to the obsolete industry, and there is no room for change.
Li Ya also further emphasized that the continuous release of supervision signals to strictly rectify “mining” activities strongly demonstrates the determination to continue cracking down on “mining” and also sounded the alarm for some “wishful people.” For the behavior of buying and selling mining machines with a clear purpose of “mining” in the market, both buyers and sellers should break their illusions in time, give up fluke mentality, and avoid such operations.
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