Major crypto mining hub in China’s Sichuan province set to shut down operations
Chinese authorities continue to crack down on crypto mining, a city in Sichuan province has reportedly halted local Bitcoin mining farms.
Chinese financial publication Sina Finance reported on Friday that authorities in Ya’an City have ordered local Bitcoin mining operations to shut down for inspection.
Citing an anonymous source from a Chinese news agency PA News, the report said that it is not specified when or whether mining operations will start again.
Chinese crypto blogger Colin Wu said Sichuan issued a document ordering power generation companies to immediately stop supplying power to any virtual currency mining operations.
On June 18, Sichuan officially issued a document requesting power generation companies are required to immediately stop supplying power to any virtual currency mining, and report the relevant situation on the 25th. https://t.co/O39TSETy0k— Wu Blockchain (@WuBlockchain) June 18, 2021
According to Wu, the latest decision will impact major Bitcoin mining farms in Sichuan, which is China’s biggest hydropower producer.
“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 said.
The latest regulatory crackdown follows a series of reported crypto mining bans in several regions including Yunnan province. Authorities in Xinjiang, Inner Mongolia, and Qinghai have also ordered to stop mining operations.
Jiang Zhuoer, founder of major mining pool BTC.Top, said earlier this week that only hydropower mining farms in Sichuan are left.
Many miners had been relocating to Sichuan following crackdowns in different provinces, where they could benefit from the region's plethora of renewable energy.