Regulators in China’s Sichuan region have sent a notice to all crypto businesses within their jurisdiction end to all mining and mining-related activities in an orderly manner. Municipal administrators and subordinate offices in the region have also been directed to “guide” miners to shut down their operations “in an orderly manner.” China is responsible for more than half of bitcoin’s hashpower that is generated all around the world.
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
9.66 percent of the Bitcoin hash rate is generated in Sichuan.
According to the PANews report, it is estimated that 9.96% of the bitcoin hash rate is generated in Sichuan, China. Sichuan has long been recognized as one of the regions of the world with the most conducive conditions for Bitcoin mining. The Chinese region is known for its cheap energy and naturally cool climate–factors that the Bitcoin mining industry finds very convenient. The shutdown of crypto mining in this region would be a huge blow to the crypto mining industry. Sichuan is home to branch offices of Bitmain, AntPool, and other major mining corporations.
Will other provinces take the same anti-crypto approach?
The other regions China, including Xinjiang, Mongolia, and Yunnan, are also home to large percentages of the global Bitcoin hash power supply. Similar to Sichuan, these regions also have access to cheap electricity and inexpensive labor. Sichuan’s anti-crypto-mining ordinance was implemented on a regional level, and it won’t affect these other provinces. But it is not clear whether other regions in China may eventually follow suit with ordinances of their own. The Chinese government has taken a rather anti-cryptocurrency attitude. This is not the first time such ordinance has been implemented. Later last year, it was reported that the local government in Sichuan’s Garze Tibetan Autonomous Prefecture had demanded a cleanup in the region’s crypto-mining sector.