China stepped up law enforcement against domestic Bitcoin mining. Bitcoin mining sites in Sichuan Province had reportedly darkened and lost their ability to continue mining, according to local media.

BTC’s mining sites in Sichuan Province are reported to have darkened since Sunday, according to local media reports. Some companies even closed their condition before downtime.

According to the Global Times, a joint statement was released last Friday by the Sichuan Provincial Development and Reform Commission and the Sichuan Energy Agency. As a result, local authorities requested a total stop Bitcoin’s mining operations, instructing local power companies to “wipe, clean and shut down” mining operations without a new supply of electricity by Sunday and to conduct a self-inspection by announcing its results by this Friday. In addition, 26 companies have been listed and alleged as cryptographic mining units, including Heishui Kedi Big Data Tech Co. and Kangding Guorong Tech Co.

More than 90% of BTC mining capacity lost

The ban means that more than 90% of China’s Bitcoin mining capacity is estimated to close, at least in the short term. Local network users described this event as a collective “mining accident” or even “end of era.”

In southwestern China, Sichuan Province is considered the largest Bitcoin mining center in China or the world. Unlike thermal power produced in Inner Mongolia and Xijiang Province, BTC’s mining operations in Sichuan are mainly generated by hydropower, which according to local data is more environmentally friendly and sustainable.

Shentu Qingchun, CEO of Shenzhen-based blockchain company BankLedger, expressed his disappointment at the latest robbery.

“We hoped Sichuan would be an exception during the squeeze because there is electricity there during the rainy season. But Chinese regulators are now taking an integrated approach that would reform and curb China’s thriving Bitcoin mining industry.”

Similar severe bans in other key mining areas also in the northern areas happened recently. In addition, in some areas northwest There is also a power outage in China due to a natural disaster caused by floods, which affects the hashrate of mining ponds.

Some analysts believe China is planning its latest move stretch regulatory control of digital currency trading and prevent systematic financing risk and prohibit money laundering such as such illegal activities. The market believes that China is working to promote it digital currency (e-CNY) cryptocurrencies in the long run.

Meanwhile, the price of Bitcoin changed to $ 34,988 during the day, and was at a low of $ 33,429 in the last 24 hours. Some analysts pointed out that the hashrate in China fell significantly, meeting the excess death, or 50-day moving average, falls below the 200-day moving average, according to Bloomberg on Sunday.

Image source: Shutterstock

.

LEAVE A REPLY

Please enter your comment!
Please enter your name here