TL;DR Breakdown
- Chinese authorities continue to tighten their grip on crypto operators.
- Authorities in the Ya’an region have ordered the miners to stop their progress.
- This will affect the miners in Sichuan, China’s biggest hydropower generator.
There are reports that Chinese authorities have come up with a strict rule for mining farms in Ya’an City in Sichuan province. The Sichuan province is the biggest hydropower generator in China. A prominent Chinese publication, Sina Finance presented a report wherein it claims that the government has shut down the working of all the miners that reside in that region.
The reason behind the abrupt shutdown of all mining activities in Ya’an City is that the officials seek to examine these mining farms for reasons not yet known. It is possible that the authorities want to check for possible illegalities in the area or environmental concerns. The official reason for this is, however, still not known.
Crypto growth curb in Sichuan and the whole of China
A renowned Chinese crypto blogger, Colin Wu, has also reported this incident saying that the authorities have ordered the hydropower generators to examine the crypto mining farms and after examination, cease the power supply to these farms. There are around 26 mining farms that will cease to function and it will put a major strain on the mining activities in all of China.
The 26 mining farms are mostly large-scale farms and right now, it is not known if the operations of these mining farms will be allowed to resume. This is not the only place to see such kind of treatment. Earlier, crypto mining bans have been imposed on various provinces like Yunnan, Inner Mongolia, Qinghai , along with the Xinjiang province. This hints that the Chinese government is indirectly stopping the growth of crypto by stopping mining activities in the country.
As mentioned by Jiang Zhuoer, founder of the major Bitcoin mining pool, BTC.Top earlier this week, the mining farms in the province of Sichuan were the only ones that were functioning. After this incident, it is a fact that the remaining major mining pools in the country will obviously shut down. These mining farms were using the hydropower that was being generated in this region and now, they are being shut down.
China debuted its digital yuan this month but its stance on cryptocurrencies is still unknown. This incident in the Sichuan province of China might shed further light on the government’s plans for crypto in the country.
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