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On the afternoon of September 24, the Operation Bureau of the National Development and Reform Commission issued the "Notice on Regulating Virtual Currency "Mining" Activities". The notice pointed out that in order to effectively prevent and deal with the risks brought about by the blind and disorderly development of virtual currency "mining" activities, and to further promote energy conservation and emission reduction, and help achieve the carbon peak and carbon neutrality goals as scheduled, relevant actions are specially promoted.
The notice requires a comprehensive review and investigation of virtual currency "mining" projects, strictly prohibits investment and construction of new projects, and accelerates the orderly exit of existing projects.
Before the deadline, major virtual currencies fell, with Bitcoin trading at around $42,000, a 24-hour drop of more than 3%, and the decline is expected to expand further. On September 22, Bitcoin once fell below $40,000. US regulators also recently rejected a loan project from Coinbase, the hottest cryptocurrency trading platform.
The following is the full text of the notice:
Notice of the National Development and Reform Commission and other departments on regulating virtual currency "mining" activities
Development and Reform Commission [2021] No. 1283
The People's Governments of all provinces, autonomous regions, and municipalities directly under the Central Government, and the Xinjiang Production and Construction Corps:
In order to effectively prevent and deal with the risks and hidden dangers brought about by the blind and disorderly development of virtual currency "mining" activities, further promote energy conservation and emission reduction, and help achieve the carbon peak and carbon neutrality goals as scheduled, the following notice is hereby issued on the rectification of virtual currency "mining" activities:
1. Fully understand the importance of regulating virtual currency "mining" activities
Virtual currency "mining" activities refer to the process of calculating and producing virtual currency through special "mining machines". It consumes large amounts of energy and emits large amounts of carbon, has a low contribution to the national economy, and has limited driving effects on industrial development, scientific and technological progress, etc. In addition, the risks derived from the production and trading of virtual currency are becoming increasingly prominent. Its blind and disorderly development has an adverse impact on promoting high-quality economic and social development and energy conservation and emission reduction.
Rectifying virtual currency "mining" activities is of great significance to promoting the optimization of my country's industrial structure, promoting energy conservation and emission reduction, and achieving carbon peak and carbon neutrality goals as scheduled. All regions, departments and relevant enterprises should attach great importance to it, fully recognize the necessity and importance of rectifying virtual currency "mining" activities, and truly regard the rectification of virtual currency "mining" activities as an important task to promote high-quality economic and social development, further enhance the sense of responsibility and urgency, grasp the key links, take effective measures, comprehensively rectify virtual currency "mining" activities, and ensure that practical results are achieved.
3. Comprehensively sort out and investigate virtual currency "mining" projects
(III) Sort out and investigate existing projects. Comprehensively survey the local virtual currency "mining" projects that have been put into operation, establish a project list, sort out the basic data such as the affiliated enterprises, scale, computing power, power consumption, etc. of the virtual currency "mining" projects in operation one by one, and update them in real time every week. Conduct a comprehensive investigation on whether there are virtual currency "mining" activities in big data industrial parks and high-tech parks, accurately distinguish between data centers and virtual currency "mines", and ensure that there are no gaps in the local virtual currency "mining" investigation work.
(IV) Sort out and investigate new projects under construction. Intensify the investigation in all links of the preliminary work of virtual currency "mining" projects, establish a list of virtual currency "mining" projects under construction or to be built, and sort out the basic information such as the affiliated enterprises, scale, computing power, power consumption, and planned production time. Strengthen the screening efforts in energy-saving review, electricity application and other links to ensure that the sorting and investigation data is true and comprehensive.
(V) Strengthen the monitoring and analysis of abnormal power consumption. Further carry out the analysis of grid-connected power generation data and abnormal power consumption data, use technical means to monitor and supervise, and strengthen on-site inspections of large power users in data centers. Increase the monitoring of load reduction data of grid-connected power plants other than those due to system reasons such as water supply and dispatching, and prevent public grid-connected power plants from directly supplying virtual currency "mining" companies with dedicated lines. Any illegal power supply activities discovered should be reported to the relevant regulatory authorities in a timely manner.
IV. Strictly prohibit investment and construction of new projects
(VI) Strengthen the dual control of energy consumption for new virtual currency "mining" projects. It is strictly prohibited to include new virtual currency "mining" projects in the dual control assessment system for energy consumption, strictly implement the energy consumption control responsibilities of local governments, and for regions where new virtual currency "mining" projects are discovered and verified, the energy consumption will be doubled in the dual control assessment according to the energy consumption of the new projects.
(VII) Listing virtual currency "mining" activities as obsolete industries. "Virtual currency 'mining' activities" are added to the "obsolete category" of the "Guidelines for Industrial Structure Adjustment (2019 Edition)". Before the addition, virtual currency "mining" projects are treated as obsolete industries, and investment is prohibited in accordance with the relevant provisions of the "Decision of the State Council on Issuing and Implementing the <Interim Provisions on Promoting Industrial Structure Adjustment>" (Guofa [2005] No. 40).
(VIII) It is strictly prohibited to carry out virtual currency "mining" activities in the name of data centers. Strengthen the supervision and investigation of virtual currency "mining" activities, clearly distinguish "mining" from the boundaries of blockchain, big data, cloud computing and other industries, guide relevant enterprises to develop high-tech industries with low resource consumption and high added value, strictly prohibit the use of data centers to carry out virtual currency "mining" activities, and prohibit the promotion and expansion of virtual currency "mining" projects in the name of developing digital economy and strategic emerging industries.
(IX) Strengthen credit supervision of data center companies. Carry out credit supervision on data center companies, implement a credit commitment system, organize the signing of credit commitment letters, and voluntarily promise not to participate in virtual currency "mining" activities. Relying on credit information sharing platforms at all levels, the content of corporate commitments and the fulfillment of commitments will be included in credit records as a basis for in-process and post-event supervision. Restrictions will be imposed on companies that fail to fulfill their commitments in accordance with the law.
(10) Strictly restrict the electricity application and energy consumption of virtual currency "mining" enterprises. It is prohibited to apply for power connection for new virtual currency "mining" projects, and the power application business shall be strictly reviewed. It is not allowed to supply electricity to virtual currency "mining" enterprises under any name, and all application projects in process shall be stopped. Strictly implement the power business licensing system, and it is strictly prohibited to supply electricity to enterprises with new virtual currency "mining" projects by means of pre-grid power supply, special line pulling, etc. Strengthen the supervision of power application business, and carry out spot checks and verifications through "double random, one public" and other methods.
(XI) It is strictly prohibited to provide fiscal and financial support for new virtual currency "mining" projects. Local governments, financial institutions and non-bank payment institutions are strictly prohibited from supporting new virtual currency "mining" projects in any form of fiscal, taxation, finance, etc. It is not allowed to introduce new virtual currency "mining" projects into government-led industrial parks.
V. Accelerate the orderly exit of existing projects
(XII) Investigate and punish illegal and irregular power supply behaviors in accordance with the law. Increase the intensity of administrative law enforcement work, and resolutely put an end to the behaviors of power generation enterprises, especially small hydropower enterprises, supplying power to virtual currency "mining" projects in front of the grid, direct power supply through dedicated lines, etc. Virtual currency "mining" enterprises are strictly prohibited from developing self-provided power plants for power supply in any form. Unblock various channels such as the 12398 energy supervision complaint hotline, severely investigate and punish illegal and irregular power supply behaviors, and impose administrative penalties in accordance with the law. Take power suspension and restriction measures in accordance with the law for virtual currency "mining" enterprises that have been found to have illegally used electricity.
(XIII) Implement differentiated electricity prices. Include virtual currency "mining" projects in the scope of implementation of the differentiated electricity price policy, implement the "eliminated" enterprise electricity price, and increase the price by 0.30 yuan per kilowatt-hour. Local governments can further increase the price increase standard according to actual conditions. Update the list of virtual currency "mining" projects in a timely manner, strengthen supervision and inspection, ensure that the differentiated electricity price policy is strictly implemented, and collect the increased electricity fees from virtual currency "mining" enterprises in a timely and full manner.
(XIV) Virtual currency "mining" projects are not allowed to participate in the electricity market. Strengthen the supervision of the order of the electricity market, strengthen the screening of corporate users participating in the electricity market, and do not allow virtual currency "mining" projects to participate in the electricity market under any name, and do not allow virtual currency "mining" projects to enjoy the electricity market in any way. Virtual currency "mining" projects that have entered the electricity market must withdraw within a time limit.
(15) Stop all financial and tax support for virtual currency "mining" projects. For existing projects that have been given preferential policies on taxes, rent, water and electricity fees by local governments, they must be stopped and cancelled within a time limit. Local governments are not allowed to provide financial subsidies and tax incentives to virtual currency "mining" projects and the parks where they are located.
(XVI) Stop providing financial services to virtual currency "mining" projects. Financial institutions and non-bank payment institutions are prohibited from directly or indirectly providing financial services and various forms of credit support to virtual currency "mining" enterprises and projects, and measures are taken to recover loans that have been issued. Severely crack down on all kinds of illegal fundraising and illegal issuance of securities activities carried out in the name of virtual currency "mining".
(XVII) Eliminate within a time limit in accordance with the provisions of the Guiding Catalogue for Industrial Structure Adjustment. In accordance with the relevant provisions of the Guiding Catalogue for Industrial Structure Adjustment, take effective measures to rectify and eliminate the existing virtual currency "mining" projects in an orderly manner. For enterprises that fail to eliminate within the time limit, they must be ordered to suspend production or close down in accordance with relevant national laws and regulations. Those who violate the regulations will be held accountable according to law.
VI. Safeguard Measures
(XVIII) Clarify the division of responsibilities. The development and reform department will work with the financial, energy, industry and information technology, cybersecurity and informatization, finance, taxation, market supervision and other departments to coordinate and promote the rectification of "mining" activities. All regions should establish corresponding coordination and promotion mechanisms, refine measures, and ensure that the tasks are implemented in place. All regions and relevant departments should strengthen work coordination and information sharing, and in accordance with the principle of "central coordination, provincial overall responsibility, and city and county implementation", effectively promote the rectification of virtual currency "mining" activities.
(19) Form a joint regulatory force. Financial management departments and cybersecurity and informatization departments shall strengthen monitoring, analysis and penetrating supervision of relevant entities, locate the IP addresses, specific enterprises and physical residences of mining sites identified by virtual encrypted asset big data monitoring platforms, and strengthen information sharing, communication and data cross-verification with relevant regulatory departments to form a joint governance force for the entire chain.
Power regulators should step up efforts to investigate and punish illegal power supply projects and projects with power safety hazards, and supervise those who violate regulations in participating in power market transactions. Relevant departments in various regions should establish a joint working mechanism to conduct full-chain governance of virtual currency "mining" and trading links. All regions should establish and improve reporting platforms to facilitate the supervision channels of virtual currency "mining" projects throughout society.
(20) Strengthen supervision and implementation. All regions should clarify the timetable and roadmap, establish a work log, strengthen work implementation, and timely track and analyze the progress and effectiveness of the implementation of relevant policies and measures involving the region to ensure that all work measures are implemented in a solid and detailed manner. Relevant national departments should organize third-party institutions to conduct assessments on the cleanup and exit of virtual currency "mining" projects in various regions in a timely manner, and establish an information reporting mechanism to promptly report the progress of work in various regions. |
