According to Chinese media reports, authorities in Yunnan have launched an investigation to identify and shut down miners who are illegally using electricity to mine bitcoins. The inspection will also focus on potential security threats and will be carried out by various government departments. The clean-up of the mining industry is expected to continue till the end of June.
Media: Yunnan Energy Bureau to Pull the Plug on Bitcoin Farm
Yunnan province is reportedly joining the crackdown on cryptocurrency mining that is already underway in other Chinese regions. 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 from the China Securities Journal, published by Xinhua News Agency.
The newspaper revealed that the Yunnan Energy Bureau plans to cut power supplies to individuals and companies who use electricity illegally at crypto mining facilities or steal electricity bills. A notice issued by the Energy Administration said the security risks discovered during the investigation would also be enough to shut down mining operations.
Mining area clean-up should be completed by end of June, Sina Reported on Saturday. An official of the energy regulator said that the inspection will be done jointly by various departments. The news outlet said mining companies would face penalties for unauthorized access to electricity or for avoiding transmission and distribution charges. Power generation enterprises supporting their activities also await sanctions.
Yunnan’s Plan to Shut Down a Bitcoin Farm Was Involved in Coindesk report good on Friday, citing Forkast News, which referred to a screenshot of a document that appeared to be from the Yunnan Energy Bureau. This copy was going viral on Chinese social media. Coindesk later corrected the information, stating that “the source of this claim appears to be a fake” and Surrender to “Multiple sources” which questioned the authenticity of the document.
Forkast News was also allegedly Told by an employee B T c.Top Mining Pool that the company was preparing to close its operations in Yunnan in light of the imminent restrictions from the government. However, CEO Zhuor Jiang later denied that B T c.top had a definite 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 such as Chinese crypto blogger Wu Blockchain have. said this is wrong.
China’s crackdown on crypto mining continues
Media reports have indicated that Yunnan may be the latest Chinese region to join the country’s current crackdown on cryptocurrency mining. Similar measures have already been taken in Inner Mongoliahandjob xinjiang and qinghai. energy officer sichuan Earlier this month they held a meeting to discuss the implications of bitcoin mining, but according to the SCMP, they have not adopted any policy changes at this stage.
While environmental concerns have clearly played a role in the case of Qinghai and fossil fuel-rich Inner Mongolia, Sichuan relies heavily on clean hydropower. The same holds true for Yunnan, the second largest hydropower producing province in China. In another tweet on Friday, Woo Blockchain commented:
Compared to thermal power regions such as Xinjiang and Inner Mongolia, hydropower regions such as Sichuan and Yunnan will be relatively tolerant of bitcoin mining. But miners are facing problems after the summer, and power supplies outside China may be more stable.
— Wu Blockchain (@WuBlockchain) 12 June 2021
China is aiming to reduce its carbon emissions to 65% of 2005 levels by 2030. The People’s Republic holds about 65% of the global bitcoin (B T c) hash rate, according to the Cambridge Bitcoin Electricity Consumption Index (CBECI), Xinjiang alone accounts for about 36% of it. Sichuan and Yunnan are ranked second and fourth respectively, while Inner Mongolia is in third place. It is estimated that bitcoin mining consumes approximately 110 terawatt-hours of electricity annually.
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