Most of the crypto mining happens in China, accounting for more than half of global bitcoin production. But the State Council, China’s cabinet, announced a clampdown on bitcoin mining and trading last month as part of a series of measures to control financial risks. According to the Reuters report, the Sichuan Provincial Development and Reform Commission and the Sichuan Energy Bureau ordered to shut down 26 bitcoin mining projects in the region.
China continues to crack down on crypto mining.
Popular mining regions, such as Inner Mongolia, have cited cryptocurrency mining’s use of electricity generated from highly polluting sources such as coal in orders targeting the industry. Crypto miners in Sichuan mostly use hydropower to run the specially designed computer equipment used in verifying bitcoin transactions, which suggests crackdown is more broadly based. Sichuan is China’s second-biggest bitcoin mining province, according to data compiled by the University of Cambridge. Some crypto miners move their activities there in the rainy summer to take advantage of its rich hydropower resources.
Electricity companies are ordered to stop supplying power crypto mining projects.
The latest notice orders state electricity companies in Sichuan to conduct inspections and make corrections, reporting their results by Friday. In addition, electricity companies are ordered to stop supplying electricity to crypto mining projects they have detected. The authorities also urged local governments in Sichuan to start combing for crypto mining projects and shut them down. It banned new projects. Other regional mining centers, including Xinjiang, Inner Mongolia, and Yunnan, have ordered crackdowns on bitcoin mining. Friday’s notice appears to indicate that Beijing’s displeasure with cryptocurrency mining extends beyond cases where it uses electricity generated by burning coal.