According to local reports, two Chinese provinces have banned cryptocurrency mining as the government tries to reduce the country’s carbon dioxide emissions.
June 10, 2021 | AtoZ Markets – Bitcoin miners at Shandong Economic and Technological Development Park, based in Changji Prefecture, Xinjiang Province, have received an order from local authorities to immediately cease operations.
In the case of Xinjiang, the government ordered mining companies to cease operations by 2:00 PM (local time) on June 9.
Xinjiang is often referred to as “China’s strategic energy region” due to its enormous amount of resources such as natural gas, coal and other fossil fuel resources. Along with the government’s decision, it can be expected that the Bitcoin hash rate will likely drop significantly. You can see it by looking at the statistics. The hashrate of the largest mining pool in the world has dropped more than 25% in the last 24 hours. According to sources, more than half of Antpool’s computing power is located in Xinjiang.
It's said that half hashrate of antpool was located in Xinjiang. pic.twitter.com/2ugfqcB8Ae— Red Li (@redtheminer) June 9, 2021
The ban was issued by the Changji Provincial Development and Reform Commission. When mining is suspended, miners must report it to the commission.
Chinese cryptocurrency influencer and founder of Primitive Ventures, Dovey Wan, posted a tweet claiming that Xinjiang is following Inner Mongolia’s lead. She also calls Sichuan Province “last hope” for miners in China. Moreover, he predicts that the government will soon control trading and over-the-counter (OTC) markets .
Xinjiang follows Inner Mongolia footstep to have a large cleansing of local mining operation, which is totally expected— Dovey “Rug The Fiat” Wan🪐🦖 (@DoveyWan) June 9, 2021
Now Sichuan is the the last hope for Chinese miners
I think all the mining ban should have been priced in already
Waiting for action towards OTC and trading
This is not the end …
But this is not the end. There is one more province that has banned BTC mining. The Qinghai Department of Industry and Information Technology also cut mining operations yesterday morning. All cryptocurrency mining companies will have to close. It will also not be possible to obtain approval for further operations.
China’s Qinghai Province issued a document to stop virtual currency mining operations:— 8BTCnews (@btcinchina) June 9, 2021
1. Stop approving and setting new virtual currency mining projects. Suspend all existing mining operations.#Bitcoin #bitcoinmining #cryptocurrencies pic.twitter.com/3Gg9jJOjWB
Qinghai is the third Chinese province to announce a ban on cryptocurrency mining. All these bans are part of a wider effort by central government to reduce the country’s carbon dioxide emissions. Cryptocurrency mining is inherently energy intensive, and China’s energy grid is still heavily dependent on coal.
Earlier, Chinese President Xi Jinping announced that, starting in 2026, China would start stopping energy-intensive projects to reduce the carbon dioxide emissions generated by its industry.
Cryptocurrency mining is one of the projects that is just an energy-intensive process. This causes some miners to leave the Middle Kingdom to relocate to other jurisdictions with more law-friendly and cheaper, cleaner energy sources, such as Kazakhstan.
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