The Ya’an municipal government of Sichuan, China has reportedly asked bitcoin miners to shut down their operations in the city and there was no mention of how long the businesses will remain closed.
PANews, a Chinese crypto media said, “Officials from related authorities, including the city’s energy bureau and technology bureau, had a meeting and decided to crack down on crypto mining operations.”
The outlet also said, according to an anonymous source, a meeting regarding the development was held last Thursday and it has been agreed upon that bitcoin miners must also abandon all hydroelectricity consumption parks.
Sichuan on crackdown
On June 18, the Sichuan province issued an official statement stating that power generation companies are hereby required to immediately cease the supply of any virtual currency mining and to report matters relevant to the issue on June 25.
The statement also identified 26 large mining projects that need to be monitored and eventually shut down.
However, even with this, the hash rate of bitcoin and ethereum has not fluctuated, mainly because there are many small and medium-sized hydropower stations in Yunnan, Sichuan. Receiving government supervision might be challenging for these, hence they still continue to operate.
Meanwhile, large-scale projects are expected to shut down in the short term.
Following a precedence
Over the past few weeks, a number of other Chinese provinces have engaged in similar crackdown operations against bitcoin mining activities, serving as precedence to the move of the Ya’an municipal government.
It is not clear whether the government’s activity will expand to other parts of the province. Ya’an accounts for a large number of demographic miners as it enjoys cheap hydroelectricity during the rainy season.
The development also came just a few days after Yunan, another hydro-rich region, witnessed an intensified crackdown on its mining bases.
Image courtesy of Cointelegraph News/YouTube
Coinsmart. Beste Bitcoin-Börse in Europa
Source: https://bitcoinerx.com/blockchain/sichuan-province-in-china-asks-crypto-miners-to-shut-down-operations/
