On Friday, the Sichuan Provincial Development and Reform Commission and Sichuan Energy Bureau ordered local electricity companies to “screen, clean up and terminate” mining operations by Sunday.
The action is based on a joint notice amid an intensified nationwide crackdown against cryptocurrency mining in China.
A number of 26 companies had been inspected and reported as potential cryptocurrency mining enterprises listed in the notice, including Heishui Kedi Big Data Tech Co and Kangding Guorong Tech Co.
Local electricity companies were ordered to immediately stop supplying power to confirmed crypto mining projects as well as to conduct self-inspection and rectification. In addition, the notice also banned local authorities from approving new mining projects.
Over 90% of China’s Bitcoin Mining Capacity has Shut Down
Senior Chinese officials recently decided to crack down on Bitcoin mining and trading, as well as resolutely prevent the transmission of individual risks to the wider society.
Following local authority bans, many Bitcoin mines in Southwest China’s Sichuan Province are being forced to close on Sunday. Sichuan was one of the largest cryptocurrency mining bases across China.
Other key mining hubs in China’s north and southwest regions like Northwest China’s Xinjiang Uygur Autonomous Region, North China’s Inner Mongolia Autonomous Region and Southwest China’s Yunnan Province had taken similar harsh steps.
China’s Xinjiang Uygur Autonomous Region is in no way autonomous, and is the site of a modern ethnic cleansing action undertaken by the Chinese Communist Party (CCP). The Uygur minority is being abused in a way that should not happen.
The West is happy to do business with the Chinese, but overlooks how the CCP abuses people in the Uygur region, and beyond. In truth, these abuses are beyond forgiveness, and should be dealt with – using force if necessary.
The same ideas apply to Tibet, and other areas of what is now considered “China”.
To date, more than 90% of China’s Bitcoin mining capacity is estimated to be shut down.
Chinese Miners Are Scrambling to Find Overseas Locations
Some players in the cryptocurrency had hoped that regulators in Sichuan could take a softer approach where there is an electricity glut in the rainy season.
However, the latest ban is showing Chinese regulators’ determination to curb speculative crypto trading to control financial risks.
As much as 1/3 of Bitcoin’s processing power may be offline in the near term. Therefore, Chinese miners must migrate overseas. The new locations are likely going to be found in North America and Russia.