The authorities of the Chinese province of Sichuan demanded to stop the activities of “key” miners and forbade local energy companies to supply them with electricity. This was reported by 8btc, citing a notice published by the authorities.
China may lost its last space for #Bitcoin mining.
Sichuan Development and Reform Commission and Energy Bureau issued a notice today, requires to shutdown 26 “suspected key projects” of virtual currency mining before June 20. pic.twitter.com/UI4jdMS48E
— 8BTCnews (@btcinchina) June 18, 2021
According to the portal, on June 18, the Sichuan Provincial Development and Reform Commission and the local Department of Energy issued a notice indicating 26 cryptocurrency mining enterprises, whose activities should be stopped until June 20.
According to the document, all energy companies in the province are required to stop supplying electricity to miners and report to the regulator by June 25. Local supervisors also conduct inspections to identify cryptocurrency mining businesses. All regions of Sichuan were banned from issuing work permits to new companies in this area.
According to journalist Colin Wu, there are many small hydroelectric power plants in Sichuan and Yunnan provinces that may continue to cooperate with miners. However, large enterprises will be disconnected in the near future.
There are many small and medium-sized hydropower stations in Yunnan, Sichuan, and it may be difficult for them to receive government supervision. However, large-scale projects will be shut down in the short term.
– Wu Blockchain (@WuBlockchain) June 18, 2021
The Chinese portal PANews, citing an anonymous source, also reported that on June 17, “officials from the relevant authorities, including the energy and technical departments,” held a meeting and decided to stop cryptocurrency mining operations.
Miners based in the province have allegedly received notifications that they must close their sites at 22:00 local time (June 17 at 17:00 Moscow time) for self-inspection.
In Sichuan, miners mainly consume surplus hydropower. From May to October, the province has a “high water” season, during which time the capacity of local power plants increases, providing surplus energy and low tariffs.
Earlier, the media reported that the Sichuan authorities will allow local miners to finish working until the end of September.
In May 2021, Vice Premier of the State Council of the People’s Republic of China Liu He announced that the authorities intend to take action regarding cryptocurrency mining and bitcoin trading.
In the same month, China’s Xinhua news agency criticized digital gold and its mining methods.
Three Chinese provinces have already introduced restrictions on the mining of cryptocurrencies: Yunnan, Qinghai and Xinjiang. The authorities of Inner Mongolia Autonomous Region have also launched a fight against illegal mining.
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