U.S. President Joe Biden has issued an order asking crypto miners affiliated to China to wind up operations in Wyoming. He pointed out that MineOne, a British Virgin Islands company, is majorly owned by Chinese nationals.
The company acquired real estate property in the U.S. in June 2022. It subsequently carried out improvements to make the land fit for “specialized” crypto mining operations.
The White House has now accused it of acquiring property and initiating work there sans filing with the Committee on Foreign Investment in the United States (CFIUS). Ultimately, a public tip received instigated investigations.
The facility ought to now remove mining equipment and installations from its property that’s situated within a mile of the military facility in Cheyenne, the capital of Wyoming. The military facility, in turn, harbors intercontinental Minuteman III nuclear missiles.
The ‘National Security’ Tangent
MineOne has 120 days in hand to “sell or transfer all direct and indirect legal and beneficial ownership interests” in the real estate. The company's crypto mining equipment on the property is a cause of concern because of the threat it poses to national security.
More so, some equipment is foreign-sourced and could be “potentially capable of facilitating surveillance and espionage activities,” a parallelly released Treasury statement revealed.
Commenting on the Biden’s decision, Treasury Secretary Janet Yellen said,
“Today’s divestment order underscores President Biden’s steadfast commitment to protecting the United States’ national security. It also highlights the critical gatekeeper role that CFIUS serves to ensure that foreign investment does not undermine our national security.”
CFIUS could lawfully enter into a negotiated mitigation agreement if it is effective. The committee has also been authorized to implement measures it “deems necessary and appropriate” to verify and enforce compliance.
To do so, it can look into accounting books, audit hardware/software data, and interview employees. Likewise, the Attorney General also has powers to take “any decisions” to make sure Biden’s order is discharged.
The Chinese embassy is reportedly not aware about this, but the spokesperson, Liu Pengyu, said that “overstretching” the concept of national security and politicizing investment issues contradicts the principles of market economy and international trade rules. Pengyu added that this, in turn, tarnishes the international confidence in the U.S. market environment.
