Biden Bans Chinese-Controlled Crypto Mining Near US Military Base

US President Joe Biden has shut down a China-based cryptocurrency mining company and banned it from acquiring land near a Wyoming nuclear missile base.

According to Biden, the company was built just a mile from an Air Force base with nuclear-armed intercontinental ballistic missiles, posing a “national security risk.”

MineOne ordered shut down

MineOne Partners Ltd., a cryptomining facility near Francis E. Warren Air Force Base, is partially backed by Chinese citizens. According to the order, the company used specialized cryptomining equipment that implements technology of foreign origin, threatening national security.

Biden emphasized in the order that the foreign-origin team could assist in surveillance and espionage activities. Therefore, the company must sell the land within 120 days and abandon its machine and structures on the property within 90 days.

In June 2022, MineOne acquired the land in Cheyenne and renovated it to accommodate crypto mining. However, the Committee on Foreign Investment in the United States (CFIUS) noted that the purchase was not reported as mandatory until after receiving public advice.

Treasury Secretary Janet Yellen, as CFIUS chair, emphasized the committee’s role in safeguarding national security. He explained that the agency ensures that foreign investments do not threaten national security, especially transactions involving US military installations and those with special technology and equipment.

US Government Scrutiny of Chinese Cryptocurrency Mining Firms

Chinese-owned cryptocurrency mining operations have soared in the US since it was banned in China in 2021. Although some cryptocurrency miners returned to the Asian country, Chinese entrepreneurs in the sector are attracted to the US because of its relatively cheap electricity and its well-established legal framework. .

The recent action against MineOne is the second instance in which US government officials have targeted Chinese-owned crypto mining companies in recent weeks. Earlier this month, Arkansas Republican Governor Sarah Huckabee Sanders signed two laws restricting foreign ownership of crypto mining operations in the state.

These laws prohibit ownership of crypto mines by foreign nationals of countries such as China, Iran, Cuba, and others subject to regulations outlined in the State Department’s International Trafficking in Arms Regulations.

In particular, Arkansas has seen an increase in Bitcoin mining operations in recent years. In October, it was revealed that Chinese investors associated with the authoritarian government were operating at least three mines in Arkansas. A former employee linked to those operations disclosed efforts to survey “more than 200 target mining sites” in more than ten states.

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