China Laws and Regulations Update in October 2021

1. Notice on Rectifying Virtual Currency “Mining”

Promulgated by eleven departments including NDRC

Promulgation date: 24 September 2021

Document number: FGYX 2021 No.1283

Based on the general principles of “close monitoring, strict risk control, no increase in current amounts and appropriate handling of current projects”, the Notice requires strengthened regulation of the complete industry chain in upper and lower streams of virtual currency “mining”, no new virtual currency mining projects, quicker orderly withdrawal from current projects, improvement of the industry structure and help to achieve the aims to halt the rise of and neutralize carbon emissions. The Notice gives three tasks including comprehensive review and examination of virtual currency mining projects and strict bans on investing and developing new projects, which are divided into specific measures to review and examine current projects and strengthen dual energy consumption control of new virtual currency mining projects. The Notice clearly put virtual currency mining on the list of eliminated industries and strictly bans doing virtual currency mining in the name of a data center.