Mongolia stands against mining

Il mining of cryptocurrencies continues to raise quite a few doubts and problems. The increase in consumption necessary for the calculation activity thanks to which it is possible to extract the blocks is in fact causing many recriminations by environmentalists, at a time when the issue of global warming has returned to agitate public opinion thanks to the initiatives put in place by Greta Thunberg.
It is indeed a non-secondary problem, if one thinks that in Iran just the token extraction activity resulted in a increase in energy consumption in the order of 7%, prompting the authorities to intervene to adjust the tariffs in force and to charge more for those who use the resources in question for mining.
In the last few days, however, a new front has been opened in this sense, namely that represented by Mongolia. Country in which the government authorities have shown a considerable nuisance for the problems posed by this activity, particularly flourishing within national borders thanks to very affordable energy rates.

A very attractive country for mining companies

Mongolia is a kind of paradise for those working in the mining sector. To make it so are the energy tariffs, much lower than those in force in many other countries, which have therefore led many companies in the sector to establish their own sites there.
Now, however, the situation could change radically. According to a report reported by ChainNews, the local authorities would intend to eliminate any kind of facilitation in favor of mining. A decision resulting from the observation that these would be pseudo-financial activities not related to the real economy. Hence the decision, taken in concert between the Financial Office, those of the Ministry of Industry and Big Data, the Commission for Development and Reforms, and the Public Security Department, which did not fail to raise significant questions on the destiny of mining in Mongolia.

What will happen now?

The sudden ostracism decreed against mining comes despite the fact that Mongolia has seen over the last few months a fair number of companies arriving in its territory, which have set up their own farms there.
It should however be specified that the country does not move from a technological closure perspective. Local authorities, in fact, have at the same time stated that they want to favor cloud computing, big data and Blockchain technology, clearly considering them much more useful for a harmonious development of the real economy, unlike cryptocurrencies, seen as pure speculation and little more.
It should also be emphasized that Mongolia also makes no secret of considering mining a real environmental threat, like China. It is therefore not surprising that the local government has decided to create a less favorable framework for the industries in the sector, instead favoring less dangerous technological activities from an ecological point of view. It now remains to be seen whether Mongolia (and China) will not decide now to bring this attitude to the extreme, by deciding to raise a real notice for mining.