China is introducing new regulations for Bitcoin miners, while a US congressman admits that regulators are largely ignorant about the cryptocurrency and how it works.
This Monday, the government of Inner Mongolia, an autonomous region of China, announced that those who engage in Bitcoin mining in the region, violating new regulations imposed by the nation on the matter, could be blacklisted by the country's credit system, which would prevent them from accessing financing and other financial products.
According to informs a local medium, the Development and Reform Commission of Inner Mongolia Autonomous Region in China is studying a new reform against Bitcoin miners and the cryptocurrencies, , which will help ensure control over energy consumption in the autonomous region.
The commission intends to implement new regulations that will punish all those who mine bitcoins or other cryptocurrencies within the region, which recently spoke out against crypto mining, for allegedly affecting its energy distribution.
The Inner Mongolia Autonomous Region Development and Reform Commission says that individuals, officials, companies, energy firms that provide support for cryptocurrency mining, and even internet cafes that illegally mine bitcoins, will be suspended and blacklisted from China's credit system, losing the ability to access financing, credit and loans, in addition to suffering various blockages.
Inner Mongolia's new proposals to stop crypto mining activity entered the public consultation phase from yesterday until June 1. Meanwhile, in the United States, Congressman Jim Himes considers that most regulators do not have significant knowledge about Bitcoin (BTC), cryptocurrencies, or how these digital assets work.
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Bitcoin, popularity vs. ignorance
It is undeniable that Bitcoin's popularity has grown significantly in recent years, and that this has been a factor that has played both for and against the cryptocurrency.
On the one hand, its rise and growth has encouraged the participation of millions of people and dozens of companies in the world, who have been encouraged to invest in this digital asset. Also, a large number of people have become interested in bitcoin mining, which has increased the power of the network. blockchain, making it much more robust and highly secure. Both the adoption of the cryptocurrency and the growth of its mining activity have positively influenced the price of BTC, which until recently reached an all-time high of $64.000.
However, the rise of mining, and the constant attacks against the network for its energy consumption, has caught the attention of regulators, who are using their weapons to curb the "large amount of energy" that the network consumes to remain operational, although experts and organizations have shown that this is much lower than the current consumption of the international banking system.
The fight for a green planet led regulators in China to issue tough regulations on Bitcoin, crypto mining and its commercial activity, and the regional government of Inner Mongolia to further tighten its previous bans.
On the other hand, the lack of knowledge about how Bitcoin works, its potential advantages and benefits, and the multiple use cases and applications offered by both the cryptocurrency and its underlying technology, has meant that regulators have not made progress in creating precise regulations that allow the development of this industry.
They don't have deep knowledge about cryptocurrencies
Just like recognized Recently, Congressman Jim Himes said that most of his colleagues do not have a deep knowledge about Bitcoin and cryptocurrencies, and in many cases, he says, he has been asked What is the real benefit of digital assets?.
Himes points out that this situation will make the arrival of favorable regulation for the crypto industry in the United States take longer than estimated, although in the country different initiatives have already been carried out to encourage regulators and legislators to learn more about crypto assets.
Let us remember that, in October, the Digital Chamber of Commerce implement an information campaign about Bitcoin, giving $50 in the cryptocurrency to each of the 541 US congressmen. With this educational initiative, the CCD sought to provide a set of tools for interaction and practical use of cryptocurrencies by legislators. Also, the country's Congress has held multiple hearings to address the benefits and implications of cryptocurrencies and blockchain technology.
To date, Himes says that digital assets are something innovative for congressmen, although most, out of ignorance, tend to relate them to illicit activities.
More rulers declare themselves Bitcoin “hodlers”
While Himes acknowledges that congressmen and lawmakers still have a long way to go in understanding Bitcoin, more government officials are revealing themselves as hodlers of this powerful cryptocurrency.
Recently, the governor of Wyoming shocked everyone by revealing that he is a Bitcoin holder. Mark gordon claimed to own the prized cryptocurrency. In addition to Gordon, Francis Suárez, mayor of Miami and Cynthia lummis, a US senator for the state of Wyoming, also declared themselves Bitcoin investors and hodlers.
At the time of this writing, the price of Bitcoin is $38.400 per unit, while its market capitalization exceeds $717.000 billion. Since its fall last Sunday, Bitcoin has recovered by more than 19%.
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