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China's Inner Mongolia to Stop Bitcoin Mining

Authorities in China's Inner Mongolia region plan to stop local bitcoin mining activities.

According to an energy-saving plan published by the Inner Mongolia Development and Reform Commission on Feb. 25, local authorities will stop all ongoing bitcoin mining operations and prevent new ones from being established. These new restrictions are meant to reduce local energy usage, and will also block other energy-intensive industries from establishing operations in the region.

The Inner Mongolia Development and Reform Commission aims to cut the amount of energy consumed per unit of economic growth by 3% compared to last year's levels by — among other things — shutting down all local bitcoin mining operations by the end of April. The region is one of China's most attractive spots for bitcoin mining along with Sichuan and Xinjiang due to low electricity prices.  China is a popular location for mining operations — it attracts an estimated 65% of global hash rate, enough to spawn the debunked myth that local authorities can reverse bitcoin transactions.

Amid regulatory pressure, Chinese miners are starting to look abroad for places to transfer their operations. Reports from January suggest that China's bitcoin miners may be eyeing Sweden and the Nordic countries or even Kazakhstan for their new base of operations.