President Biden Orders Shutdown of Chinese Cryptomining Operation Near US Air Force Base
In a bold move to protect national security, President Joe Biden issued an executive order to shut down and sell a Chinese-owned cryptocurrency mining operation located near the F.E. Warren Air Force Base in Wyoming. The facility, owned by MineOne Partners Limited, posed significant espionage risks due to its proximity to sensitive military installations and a Microsoft data center supporting the Pentagon.
Security Concerns and Federal Action
The MineOne cryptomining facility raised alarms as a potential security threat, prompting Microsoft to alert the federal Committee on Foreign Investment in the United States (CFIUS) about the risks associated with the operation. The industrial-scale computing power and presence of Chinese nationals at the facility could facilitate intelligence-gathering efforts by China, according to reports.
- Microsoft’s warning about espionage risks
- CFIUS confirmation of security threats
- President Biden’s executive order to address risks
Biden Administration’s Stance on National Security
The shutdown of the Chinese-owned cryptomining facility aligns with the Biden administration’s broader strategy to regulate foreign investments in critical sectors. This action comes on the heels of bipartisan efforts to ban TikTok in the US unless its Chinese owner divests ownership, reflecting a growing consensus to safeguard national technological and strategic interests.
State-Level Regulations and Consequences
States like Arkansas are also enacting laws to restrict foreign ownership of cryptocurrency mining operations, particularly targeting Chinese, Iranian, and Cuban investors. These regulations aim to reduce foreign influence in vital sectors and address local concerns about noise and environmental impact caused by cryptomining activities.
- Arkansas laws on foreign-owned cryptomines
- Demand for divestment within a year
- Strict operational restrictions for foreign-owned facilities
Impact on the Cryptocurrency Industry
The closure of the MineOne cryptomining facility underscores the regulatory challenges faced by the cryptocurrency industry, particularly foreign-owned operations. Chinese-owned cryptomines in the US have come under increased scrutiny for potential national security risks, prompting strict actions like equipment removal and property sale within specified timeframes.
Future Trends in US-China Tech Relations
President Biden’s decisive actions signal a prioritization of national security concerns over economic interests when assessing foreign investments. This move sets a precedent for future scrutiny and regulation of foreign enterprises in critical sectors, as the US-China rivalry continues to shape technology and economic policies.
- Geopolitical implications of US-China tech relations
- Complexities in navigating national security policies
- Need for compliance and operational reassessment
Hot Take: President Biden Cracks Down on Chinese Cryptomining Near Air Force Base
United States President Joe Biden has ordered the shutdown and sale of a Chinese-originated crypto mining operation located near a critical Air Force base in Wyoming, the New York Times reported.
By
By
By
By
By