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CHINA: Sichuan authorities ban crypto mining in the province

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The financial administration of the Chinese province of Sichuan issued a notification to the controlled departments demanding an “orderly termination of mining activity.”

According to PANews, almost 10% of the global bitcoin hash is generated in Sichuan rich in hydropower resources.

Thus, while mining in the province was previously encouraged, which can absorb excess electricity, now the situation has changed dramatically.

The notice states the following:

“Local hydropower companies should immediately stop investing in activities related to mining virtual currencies and no longer participate in such projects. Otherwise, the agency will recommend the organization of investigations into illegal projects, impose fines, issue orders for independent demolition and resort to other administrative measures.”

According to The Block, it is not yet clear whether mining activities in Sichuan really will completely stop. According to sources familiar with the situation, the order may not come into force, but it is likely that miners will lose access to cheap electricity.

Recall, according to some reports, there is a shortage of hydropower in Sichuan.

Lena S.
Lena is an adventurous soul searching the world for truth and balance. She is a mother of 2 beautiful daughters and a full time writer for Financial News where she covers various topics from finance, government, politics, current events, crypto and technology.

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