Mining Sector Cleanup Reports Put China’s Yunnan Province in the Spotlight – Mining Bitcoin News
According to Chinese media reports, the authorities in Yunnan are opening an investigation to identify and shut down miners who are illegally using electricity to mint Bitcoin. The inspections will also focus on potential safety risks and will be carried out by various government agencies. The mining industry cleanup is expected to continue until the end of June.
Media: Yunnan Energy Bureau pulls the plug on bitcoin farms
Yunnan Province is reportedly joining crackdown on cryptocurrency mining crackdowns that are already under way in other regions of China. According to the South China Morning Post (SCMP), local authorities have ordered an investigation into the alleged illegal use of electricity in Bitcoin mining. On Sunday, the publication cited a June 12 report in the China Securities Journal published by Xinhua News Agency.
The newspaper revealed that the Yunnan Energy Bureau plans to cut power to individuals and companies who illegally use electricity in crypto mining facilities or bypass utility bills. Security risks discovered during the controls are also sufficient to stop mining operations, according to a notice from the energy management.
The cleanup of the mining sector should be completed by the end of June, Sina reported on Saturday. An official from the energy regulator said the inspections were being carried out jointly by different departments. Mining companies that rely on unauthorized access to electricity or bypass transmission and distribution fees will face sanctions, the news agency added. In addition, the power generation companies expect sanctions that support their activities.
Yunnan’s plans to shut down bitcoin farms were covered in a Coindesk report on Friday, citing Forkast News, which referenced a screenshot of a document apparently from the Yunnan Energy Bureau. The copy circulated on Chinese social media. Coindesk later corrected the information that “the source for this claim appeared to be a forgery” and cited “multiple sources” that questioned the authenticity of the document.
Forkast News was also reportedly told by an employee of BTC.top’s mining pool that the company was preparing to shut down its operations in Yunnan amid impending government restrictions. However, CEO Zhuoer Jiang later denied that BTC.top had any precise idea of the province’s regulatory policy towards the industry. The executive was unable to verify the authenticity of the document in the screenshot, while others such as Chinese crypto blogger Wu Blockchain did said it is wrong.
China’s tough fight against crypto mining continues
The media reports have shown that Yunnan could be the newest Chinese region to join the country’s current crackdown on cryptocurrency mining. Similar measures have already been taken in Inner Mongolia, Xinjiang and Qinghai. Energy officials in Sichuan held a meeting earlier this month to discuss the impact of Bitcoin mining, but they have not made any policy changes at the time, according to the SCMP.
While environmental concerns clearly played a role in the case of Qinghai and fossil fuel-rich Inner Mongolia, Sichuan is heavily committed to cleaner hydropower. The same applies to Yunnan, the second largest Chinese province that produces hydropower. In another tweet on Friday, Wu Blockchain commented:
Compared to thermal power regions like Xinjiang and Inner Mongolia, hydropower regions like Sichuan and Yunnan will be relatively tolerant of bitcoin mining. But miners are struggling after the summer, and electricity outside of China could be more stable.
– Wu blockchain (@WuBlockchain) June 12, 2021
China aims to reduce its CO2 emissions to 65% of 2005 levels by 2030. According to the Cambridge Bitcoin Electricity Consumption Index (CBECI), the People’s Republic with Xinjiang accounts for around 65% of the global hash rate of Bitcoin (BTC). solely responsible for almost 36% of it. Sichuan and Yunnan are second and fourth, while Inner Mongolia is third. It is estimated that Bitcoin mining consumes around 110 terawatt hours of electricity annually.
What do you think of China’s crackdown on Bitcoin mining? Let us know in the comments section below.
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