Regulators in China’s Sichuan have sent a notice to all Bitcoin mining firms within their jurisdiction to call for a swift end to all mining and mining-related activities.
May 25 2020 | AtoZ Markets – New information reaching AtoZ Markets suggests that local government authorities in the Chinese province Sichuan are seeking to ban Bitcoin mining operations in the region.
The Chinese region of Sichuan is placing a ban on Bitcoin mining
The story began with the local media outlet PANews posting on Twitter the notice, which reads:
“The Financial Administrative of the Sichuan providence of China has issued a notice to its subordinate offices ordering them to “guide [cryptocurrency] mining entities to end their mining activities in an orderly manner.”
According to the report, it is estimated that 9.96% of the Bitcoin hash rate is generated in Sichuan, China. Sichuan is one of the regions of the world with the most conducive conditions for Bitcoin mining.
The Chinese region is famous for its cheap energy and naturally cool climate and these are factors that the Bitcoin mining industry finds very convenient. Moreover, 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, as well as other major mining corporations.
Will other provinces follow the same anti-Bitcoin mining 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-Bitcoin-mining ordinance was implemented on a regional level. That means it won’t affect these other provinces.
However, it remains unclear 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, however, is not the first time such ordinance has been implemented. Late December 2019, the local government in Sichuan’s Garze Tibetan Autonomous Prefecture demanded a cleanup in the region’s crypto-mining sector.
What do you think about the order for Sichuan Bitcoin miners to shut down? Let us know your thoughts in the comments below.