China’s fourth-biggest crypto mining province joins clampdown on bitcoin miners

China’s fourth-biggest crypto mining province joins clampdown on bitcoin miners
1 year ago
2 mins read

Authorities in China’s Yunnan province have ordered an investigation to look into the alleged unauthorized use of electricity by individuals and companies mining bitcoin.

The fourth-biggest crypto mining province in China, has joined other provinces in the country that have already cracked down on bitcoin mining.

Yunnan’s authorities ordered to shut down bitcoin mining operations that may pose safety risks due to electricity use, according to SCMP. The Yunnan Energy Bureau warned it would cut the power supply of anyone who illegally uses electricity to mine the flagship cryptocurrency.

China’s move against bitcoin mining and trading is also reportedly due to climate concerns, according to Bloomberg. Authorities have attributed a spike in electricity consumption and rising demand for coal in China to server farms underpinning bitcoin and other cryptocurrencies

Cryptocurrencies are ‘disrupting the normal economic order’

The Cambridge bitcoin Electricity Consumption Index data show that China accounts for 65% of the world’s bitcoin hash rate. Still, authorities are now cracking down on the mining and trading of the flagship cryptocurrency.

In a joint statement, three industry bodies, namely the National Internet Finance Association of China, the China Banking Association, and the Payment and Clearing Association of China, explained the reason for clamping down on the digital assets trading market. 

“Recently, cryptocurrency prices have skyrocketed and plummeted, and speculative trading of cryptocurrency has rebounded, seriously infringing on the safety of people’s property and disrupting the normal economic and financial order,” they said in a statement.

Bitcoin-mining regions order shutdown of bitcoin mining operations

Other bitcoin mining hubs, including Inner Mongolia, Xinjiang, and Qinghai, also issued notices to shut down crypto mines in their regions.

Inner Mongolia started kicking out miners as early as February. By the end of April, it has shut down 35% of bitcoin mining companies. Qinghai also ordered the shutdown of bitcoin mines and banned businesses including data centers, industrial parks, and power stations from providing land and power to cryptocurrency-related projects.

Xinjiang, which accounts for nearly 35% of China’s global bitcoin hash rate, also ordered bitcoin miners to cease operations. 

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Rhodilee Jean Dolor

Rhodilee Jean Dolor is an experienced journalist covering finance, business, digital assets news. She aims to bring accurate and verified information to Finbold readers daily.