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China Offers Cash Prizes in Latest Crypto Mining Clampdown

Mining

beincrypto.com 14 March 2022 19:40, UTC
  
Reading time: ~2 m

Chinese authorities are going to great lengths and trying unconventional methods to catch cryptocurrency mining operations it deems illegal.

Recently, a digital contest that promises thousands of dollars in cash prizes gained attention on social media because it includes an algorithm-based resolution that could pinpoint crypto mining activities.

The Digital China Innovation Contest, held annually since 2019, is part of China’s intensified efforts to clamp down on crypto mining.

Organizers are offering a $25,000 cash prize for best solution

This year, the competition organizers promised the winner a cash prize of $25,000. The individual contestant proving the most efficient solution to the problem wins.

The tournament is being held in Fuzhou, capital of East China’s Fujian Province, from January to April and comprises 10 “racing tracks.”

One racing track involves Big Data, where the participants will be asked to examine electricity data provided by the organizing committee and submit Big Data analysis to identify crypto mining activities.

The committee said in a statement the question was included because there are still crypto mines operating in China, and they impact its national carbon neutrality targets. And crypto mining also disrupts business operations by “heavily occupying computing resources.”

More than 90% of crypto-related businesses were closed in China following the original ban. The People’s Bank of China (PBC), the country’s central bank, reported that Bitcoin trading fell to nearly 10% of the global share from a high of 90%.

Last Oct, the PBC added crypto-mining to the “negative list” of industries in which investing is prohibited, effectively ending any remaining mining activity.

Two weeks later, the National Development and Reform Commission (NDCR) also added cryptocurrency mining to its industrial blacklist.

China intends to reach carbon neutrality by 2060. Crypto mining, more specifically Bitcoin mining, is notorious for its high energy consumption.

The blockades against crypto in China have turned other locations into havens. Both New York and Texas reported an increase in mining firms post-Chinese crypto crackdowns.  In addition, the mayor of Miami openly welcomed persecuted Chinese miners to his city. 


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