According to three local media reports, officials at China’s main bitcoin mining center in Sichuan have issued an order to shut down regional bitcoin mining operations for inspection. However, it is unclear how long the miners are expected to remain offline.
“Officials from related authorities, including the city’s energy bureau and technology bureau, met and decided to crack down on crypto mining operations,” the local news outlet said. PANews reported, citing anonymous sources.
A second local media outlet, BlockBeats, also reported a similar story. According to his report, bitcoin mining farms in the Sichuan region, particularly hydroelectric parks, must be closed by June 25. However, the report also stated that such parks expect an official document to be released today, although they have already received a notice.
A third report on the same topic came from a Chinese blogger. Colin wu, who confirmed that bitcoin mining farms in the Sichuan region have been closed for inspection.
The order allegedly issued by the Sichuan government was likely triggered by the State Council of China. statement about mining bitcoins last month. The council said the government “will crack down on bitcoin mining and trading behavior and resolutely prevent the transfer of individual risks to society.”
Other Chinese provinces have taken similar actions since the statement. Last week, one of the major economic and technological development zones in China’s Xinjiang province received a similar notice, demanding the closure of all bitcoin mining operations in the area. The park, which is home to some of the largest bitcoin mining facilities in China, is primarily powered by fossil fuels.
Yunnan is another Chinese province where officials recently demanded that bitcoin miners receive an inspection. However, in this case, the main concern of the province’s energy office appeared to be illegal activities. For example, some hydroelectric plants directly supplied hydroelectric power to bitcoin mining farms, allowing miners to avoid sharing their profits with the government. But there is no indication that Yunnan will ban bitcoin mining.
In Sichuan province, however, there have been no signs of illegal activities. Rather, the government established the Sichuan hydropower grid to attract energy-intensive industries to use excess electricity produced by heavy regional rains during the southwest China’s summer. Consequently, the region has become a hotbed of bitcoin mining operations.
Therefore, it is not clear what the reasoning behind the inspections in Sichuan could be. One reason for the closure of bitcoin mining operations could be that the region has recently experienced power rationing due to an unexpected delay in the rainy season. However, it is not clear if this would be the cause.