China is making do on its threat to shut down crypto mining. A month ago, the country’s State Council announced that it was cracking down on Bitcoin mining. This is now being affected in the provinces.
In Xinjiang province, Bitcoin miners have been ordered to shut down effective today. The shutdown notice was issued by The Reform and Development Commission that has jurisdiction in the Changji Hui autonomous prefecture. The order was directed at officials of the commission in the Zhundong Economic-Technological Development Park.
This is a big deal because the park is a hub for Bitcoin mining. It hosts some of the largest bitcoin mining operations, not just in China but globally. Its appeal is the use of coal for mining, which makes it a lot cheaper to run profitable Bitcoin mining operations.
The crackdown on crypto mining in Xinjiang province is a follow-up to similar measures in Inner Mongolia. This is another Chinese province that has sizeable Bitcoin mining operations.
While this crackdown is ongoing in Xinjiang and Inner Mongolia, officials in Sichuan province are weighing their options. Unlike Xinjiang and Inner Mongolia, Bitcoin mining operations in this region mainly run on hydroelectric power.
Officials in this province are still weighing the impact that shutting down mining would have on the province’s economy. However, this province could be in the clear as the mining crackdown was necessitated by the need to tame the demand for coal.
The crackdown on Bitcoin mining in China presents opportunities for crypto miners in many other places across the globe.