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The Chinese government’s efforts to crack down on Bitcoin and cryptocurrency mining across its provinces appear to be at full force. This crackdown began with Inner Mongolia, following the revelation of new rules against the operation of Bitcoin mining facilities in the region.
Reports on the government’s plans to shut down mining operations in Inner Mongolia surfaced in early March 2021.
By the end of May 2021, the Sichuan Energy Regulatory Office passed a memo to stakeholders calling for a meeting to discuss the effects of mining activities in the region. Currently, there has been no announcement of a ban on Bitcoin mining activities in the Sichuan Province.
Yesterday, June 9, 2021, new local reports revealed that specific Bitcoin Miners in Xinjiang received letters from above to suspend their operations with immediate effect.
Similar memos on mining suspension orders got passed to Bitcoin mining facilities in the Qinghai Province yesterday. Reports showed that the notice came from the Qinghai Industry and Information Technology Department. The memo noted that businesses in the region would get inspected while existing mining projects must halt operations.
Bitcoin Mining Ban Triggers Drop in BTC Hashrate
Commenting on the matter, regional reporter Colin 'Wu' Blockchain tweeted that most Bitcoin mining operations occur in the provinces. The Chinese journalist explained that:
“There are three major mining regions in China. Inner Mongolia has completely stopped, Sichuan may not stop, so the situation in Xinjiang is more complicated. The term used in the document is to suspend for rectification, which is not as strict as Inner Mongolia.”
Meanwhile, Bitcoin’s overall network hashrate took a massive hit due to the recent development in Xinjiang. Before the news, the BTC hashrate was at 180 exahash per second (EH/s). At press time, however, the BTC SHA256 hashrate has dropped to 120 EH/s.
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