Rights in Yunnan are launching an investigation to identify and shut down miners that are illegally using electrical power to make bitcoin, Chinese media reports. Inspections will also focus on potential safety hazards and will be presented out by various government departments. The mining industry cleanup is expected to continue till the end of June.
Media: Yunnan Get-up-and-go Bureau to Pull the Plug on Bitcoin Farms
The province of Yunnan is reportedly joining the crackdown on cryptocurrency mining that’s already underway in other Chinese territories. According to the South China Morning Post (SCMP), local authorities have ordered an investigation into the hypothetical illegal use of electrical power in bitcoin mining. On Sunday, the publication quoted a June 12 report by the China Securities List which is published by the Xinhua news agency.
The newspaper revealed that the Yunnan Energy Bureau plans to cut the power outfitting to individuals and companies illegally using electricity in crypto mining facilities or evading electricity bills. Safety hazards discovered during the checks will also be sufficient to shut down mining operations, states a notice issued by the pep administration.
The mining sector cleanup should be completed by the end of June, Sina reported on Saturday. An official from the verve regulator said the inspections will be carried out jointly by various departments. Mining companies relying on unauthorized access to vibrations or evading transmission and distribution fees will face penalties, the news outlet added. Sanctions also await power genesis enterprises supporting their activities.
Yunnan’s plans to shut down bitcoin farms were covered in a Coindesk reveal on Friday, citing Forkast News which had referred to a screenshot of a document appearing to be from the Yunnan Energy Office. The copy had been circulating on Chinese social media. Coindesk later corrected the information stating that “The originator for this claim appears to have been a counterfeit” and quoting “multiple sources” that questioned the authenticity of the substantiate.
Forkast News had also reportedly been told by an employee at the BTC.top mining pool that the company was preparing to cover a confine down its operations in Yunnan in light of impending government restrictions. However, CEO Zhuoer Jiang later denied that BTC.top had a well-defined idea about the province’s regulatory policy towards the industry. The executive could not verify the authenticity of the document in the screenshot while others take a shine to Chinese crypto blogger Wu Blockchain have said it’s false.
China’s Crackdown on Crypto Mining Continues
The compromise reports have indicated that Yunnan may be the latest Chinese region to join the country’s current crackdown on cryptocurrency mining. Like measures have already been taken in Inner Mongolia, Xinjiang and Qinghai. Energy officials in Sichuan engrossed a meeting to discuss the implications of bitcoin mining earlier this month but according to the SCMP, they have not take up any policy changes at this stage.
While environmental concerns have clearly played a role in the case of Qinghai and the fossil fuel-rich Inner Mongolia, Sichuan relies heavily on cleaner hydropower. The in any case is valid for Yunnan as well, which is the second-largest hydropower-producing Chinese province. In another tweet on Friday, Wu Blockchain commented:
Contrasted with thermal power regions such as Xinjiang and Inner Mongolia, hydropower regions such as Sichuan and Yunnan on be relatively tolerant of Bitcoin mining. But the miners are facing problems after the summer, and electricity supply outside of China may be various stable.
— Wu Blockchain (@WuBlockchain) June 12, 2021
China is aiming to cut its carbon emissions to 65% of the 2005 levels by 2030. The Man’s Republic accounts for around 65% of the global bitcoin (BTC) hash rate, according to the Cambridge Bitcoin Electricity Consumption Formula (CBECI), with Xinjiang alone responsible for nearly 36% of that. Sichuan and Yunnan rank second and fourth, severally, while Inner Mongolia is third. It’s been estimated that bitcoin mining consumes around 110 terawatt-hours of vibrations annually.
What are your thoughts on China’s crackdown on bitcoin mining? Tell us in the comments section below.
Image Credits: Shutterstock, Pixabay, Wiki Gardens
Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or authorization of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the writer is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or handlings mentioned in this article.
Read disclaimer