As of Sunday, China regulators have closed most BTC mines in Sichuan Province, China’s southwest region. That follows Friday’s intensified crypto clampdowns targeting mining attainments.
The ban translates to the shutting of over 90% of mining facilities in the region. Keep in mind that regulators in various crucial mining hubs in the southwest and north China have employed similar harsh regulations.
Some analysts expected regulators not to employ hash rules on crypto mining in Sichuan. Keep in mind that this province has abundant hydropower. Remember, clampdowns by China cited the high energy needed to mine crypto and environmental impact. With the recent move, industry players view the determination by the regulators to control investment risks related to virtual coins as aimed to advantage local economies.
On Sunday, an unidentified industry insider in Sichuan told Global Times that they are struggling to relocate to international mines. He added that most miners incurred massive losses in the process.
On Friday, the Energy Bureau in Sichuan and Provincial Reform Commission ordered local electricity firms to screen and terminate crypto mining activities by Sunday.
The notice highlighted 26 companies involved in crypto mining activities, including Kangding Guorong Tech Co.
Also, the notice ordered local electricity firms to suspend power supply to the detected crypto companies.
Moreover, energy firms need to inspect and rectify their services and report the outcomes by Friday. Also, local regulators are not supposed to approve new crypto mining projects.
On Sunday, BankLedger (a Shenzhen blockchain firm) CEO told Global Times that he expected China regulators to be friendly on mining activities in Sichuan as the region experiences an electricity glut during rainy seasons.
According to sources, Chines firms that support BTC mining pools like AntPoll, Binance, and Huobi Pool saw 20 to 40% real-time hash rates over the last 24 hours.
Other Chinese regions that announced regulations to curb crypto mining are Inner Mongolia, Yunnan Province, and Xinjiang.
With recent moves, China would ban over 90% of crypto mining activities in the nation. Keep in mind that China has been a crypto mining hub for years, accounting for over 75% of BTC mining globally. Also, the country has its virtual currency, the digital yuan.