China has been on a sustained crackdown on crypto mining, and it does not seem to be backing down. The latest crackdown is targeting Sichuan province.
Per a spokesperson for BTC mining platform BTC.Top, miners have been relocating to this province since the crackdown started in other provinces. It is also one of the provinces where mining relies heavily on hydroelectric power.
Reports indicate that authorities in Ya ’an in Sichuan province have ordered all miners to shut down immediately. The reason given is that they need to be examined. Sources within China indicate that there are no specific timelines on when the mines will be reopened.
According to a Chinese crypto blogger named Colin Wu, the crackdown will mainly target large miners. That’s mostly because the smaller ones may be difficult for the authorities to police.
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
Wu also noted that one of the authorities’ measures was to cut the supply of power to crypto mining companies. Wu estimated that about twenty-six miners might be hit by the latest directive going by information in his possession.
The crackdown on crypto mining in China has been quite extensive. Reports indicate in provinces such as Inner Mongolia and Xinjiang, mining operations have pretty much come to a halt. According to BTC.Top founder Jiang Zhuoer, only Sichuan province that had operational mines as of last week, and they were mainly mining using hydropower.
It will be interesting to see how the crackdown on miners will affect Bitcoin. So far, other places, including Miami, Florida are looking to attract these miners.