Bitcoin Mining Crack Down in China: Sichuan Orders Shut Down

Bitcoin Mining Crack Down in China: Sichuan Orders Shut Down

As the Chinese government continues to crack down on Bitcoin mining and cryptocurrency use in the country, the Sichuan power plants have received orders to cease servicing Bitcoin miners in the region. The new development got reported by the Ya’an municipal government.

An insider told local media house Panews that the Sichuan Ya’an Energy Bureau and the Science and Technology Bureau had a meeting to discuss the matter and reached a resolution to “clean up and rectify bitcoin mining companies in Ya’an.”

Panews reported that all mining farms in Sichuan received orders to shut down before June 25 and it includes abandoning hydropower plants.

Popular Chinese cryptocurrency journalist Colin “Wu” Blockchain took to Twitter to comment on the latest development, noting that “on June 18, Sichuan officially issued a document requesting power generation companies are required to immediately stop supplying power to any virtual currency mining and report the relevant situation on the 25th.” Wu added that

“The document identified 26 large mining projects and required to be monitored and shut down. At present, the hashrate of Bitcoin and Ethereum has not fluctuated. There are many small and medium-sized hydropower stations in Yunnan, Sichuan, and it may be difficult for them to receive government supervision. However, large-scale projects will [get] shut down in the short term.”

BTC Hashrate Falls as Bitcoin Mining Across China Intensifies

Over the past few weeks, several other provinces in China have issued eviction notices to Bitcoin mining companies. Most recent reports have correlated with the Cambridge Center for Alternative Finance index map, which argues that 65% of the total Bitcoin network hashrate emanates from China. However, the CBECI hashrate map has not seen any update since April 2020, indicating that its metrics are outdated.

Meanwhile, Bitcoin’s hashrate has maintained a depressed state over the past few weeks while fluctuating erratically. Miners across China have experienced multiple shuffles across mining pools in terms of Bitcoin hashrate distribution.

At press time, the hashrate is at 120 exahash per second (EH/s) and has dropped from 140 EH/s over the past ten hours.

 

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Author : Azeez Mustapha

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Azeez Mustapha is an experienced author, trader, markets analyst, signals strategist, and funds-manager.