China is serious about stopping cryptocurrency mining. According to Reuters, local authorities have ordered a cryptocurrency mining center in the southwestern province of Sichuan to close operations.
Yet crypto mining is huge in China, accounting for more than half of global Bitcoin production. But China’s State Council last month pledged to clamp down on Bitcoin mining and trading as part of efforts to control financial risk.
Other large mining regions, such as Mongolia, have previously said the use of electricity for cryptocurrency mining does come from high-polluting energies such as coal.
Since Friday (18/06/2021), Miners in Sichuan are reported to have turned to hydropower or hydropower to run computer equipment specifically designed to verify bitcoin transactions.
After the Sichuan Provincial Development and Reform Commission, and the Sichuan Energy Bureau issued an announcement on Friday (18/06/2021) to close 26 cryptocurrency mining centers.
Sichuan is China’s second-largest bitcoin mining province, according to the University of Cambridge. Some miners also move their mining activities there during the rainy season to take advantage of its rich hydropower resources.
Tightening Occurs Everywhere
Meanwhile, the notice also addressed the state power company in Sichuan to carry out inspections and checks. Power companies were asked to stop supplying electricity to detected crypto mining centers.
In addition, the authorities have urged the local government in Sichuan to start closing and banning the operation of new crypto mining centers.
Other regional mining hubs including Xinjiang, Inner Mongolia and Yunnan have been warned against the ban.
This further emphasizes the steps taken by the Beijing Government against crypto mining due to the use of electricity generated from burning coal.
“Renewables don’t help,” says Winston Ma, professor at NYU Law School and author of “Digital Wars.”
“The four largest mining regions – Inner Mongolia, Xinjiang, Yunnan and Sichuan – have implemented similar crackdown measures, although mining in the last two places is mostly hydropower, the first two use coal,” Ma told Reuters.
Some miners have considered moving elsewhere because of the crackdown.
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