The government authorities in the Chinese region of Sichuan are seeking to prohibit crypto mining in the region entirely. Earlier, a news outlet reported that the Financial Administrative of the Sichuan providence of China issued a notice to its subordinate offices ordering them to guide crypto mining entities to end their mining activities in an orderly manner. It is estimated that 9.96% of the entire Bitcoin hash rate is generated in Sichuan, China.
The shutdown of crypto mining activities in Sichuan would be a huge blow to the crypto industry.
Sichuan is one of the world’s regions with the most favorable conditions for crypto mining as the area is famous for the cheap energy available and naturally cool environment. These conditions favor crypto mining heavily. Sichuan is estimated to be responsible for 9.96% of the Bitcoin hash rate generated in the world. The shutdown of mining activities in Sichuan would be a huge blow to the crypto industry as the area is home to branch offices of Bitmain, AntPool, as well as other major mining corporations. China is currently responsible for over 60% of the entire bitcoin mining that happens.
The Financial Administrative of the #Sichuan providence of #China has issued a notice to its subordinate offices ordering them to “guide mining entities to end their mining activities in an orderly manner”. The province accounts for about 9.66% of the global #mining power. pic.twitter.com/mVtihdf9px
— PANews (@PANewsOfficial) May 22, 2020
Action will be taken against crypto mining firms that will not comply with authorities.
The Financial Administration issued a notice saying that hydroelectric power generation enterprises in Sichuan should immediately stop the crypto ‘mining’ activities and not add new virtual currency ‘mining’ projects. The notice warned that in case firms do not comply with the authorities, the bureau will ask the government to investigate and deal with illegal crypto mining projects. The actions might include bans, fines, order self-demolition, and other administrative measures until it is handed over to the people’s court for compulsory enforcement. The notice further urges hydroelectricity producers not to give their excess electricity to crypto miners in the area. Other Chinese regions, including Xinjiang, Mongolia, and Yunnan, are also home to many crypto mining companies, but it is unclear whether these regions will follow the same anti-crypto mining approach.