National Development and Reform Commission spokesman Meng Wei criticized bitcoin mining during a press conference in Beijing on Tuesday. He said the activity "consumes a lot of energy" and "produces a lot of carbon emissions."
Meng said that the NDRC, the country's top economic planner, will launch a "full-scale" crackdown on cryptocurrency mining focusing on commercial mining and the role of state-owned companies in the industry. She too said that the production and trading of cryptocurrencies produce "prominent risks" and criticized the industry as "blind and disorderly."
As part of its new push, the NDRC said it would raise electricity prices for any institution found to be abusing its access to subsidized energy to engage in crypto mining. The authorities have traditionally offered lower prices for electricity to schools, community centers or other public welfare institutions.
This is not the first time this year that Beijing has pledged to crack down on cryptocurrency mining.
China accounts for more than 75% of bitcoin mining worldwide, according to research published by the journal Nature Communications in April.
Despite its slide this week, bitcoin continues to have a banner year. The cryptocurrency has risen roughly 110% in 2021. Last week, it hit a record high of $ 69,000.
China is targeting cryptocurrencies for a few reasons. The authorities see currencies as a huge financial risk and as a way for people to evade strict national controls on capital and want to master such practices. Restrictions on decentralized currencies like bitcoin it also comes as the government unfolds a digital version of the yuan, which would allow China's central bank to exercise more control over the flow and exchange of money.
The latest new effort to target mining will be "of great importance" to China's goals of reducing carbon emissions and achieving carbon neutrality, Meng said at Tuesday's press conference.
China must "strictly prevent [cryptocurrency mining from] rising from the dead ashes, "Meng said.
