Home CryptoCurrency Sichuan is the fifth city in China to order the suspension of Bitcoin mining

Sichuan is the fifth city in China to order the suspension of Bitcoin mining

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Sichuan is the fifth city in China to order the suspension of Bitcoin mining

The Chinese authorities continue to force the closure of Bitcoin mining farms. This time it was 26 mining farms located in Sichuan, a southwestern province of China.

The National Development and Reform Commission (NDRC) and the Sichuan Energy Bureau informed the miners who have until June 25 to complete their operations and asked power generation companies to stop providing their services to mining companies, according to a local media outlet.

With this new decision, the authorities would force the migration out of China of a significant percentage of the Bitcoin hashrate. According to a study by the University of Cambridge, in 2020 the nation held the first place in the ranking of the hash rate with 65%.

In the case of Sichuan, it is the second province in the Asian country that contributed the highest hash rate, with 9%, according to the Cambridge report. Now, added to the other regions affected by Chinese regulation, it could be losing 57% in the hash rate.

The Sichuan region is characterized by offering advantages in the hydroelectric energy area , something that Bitcoin mining companies have taken advantage of.

Chinese journalist Colin Wu, expressed that hydroelectric power in Sichuan is “abandoned” in summer and if it is not used for mining it would be wasted.

According to Twitter user @ bigmagicdao , people will “witness history” in bitcoin mining when all mining farms close. In fact, it can already be seen how China’s action negatively impacts the hashrate.

Sichuan is the fifth city in China to order the suspension of Bitcoin mining
bitcoin hashrate has dropped 10% in the last 24 hours. Source: BitInfoCharts.

According to the Bitinfocharts service graph, it can be seen how the hashrate has fallen by 10.95% in the last 24 hours, reaching 118,039 EH / s.

The message from @ bigmagicdao , was accompanied by some data showing how the hashrate affected the mining pools. For example, in Antpool it fell 21% and Binance Pool 7%.

The Antpool mining pool is one of the most affected by the closure of mining operations in Sichuan.

China’s attempts to censor bitcoin were exposed by the financial committee of that country. They consider Bitcoin mining as a key sector that must be monitored to “prevent and control the financial risks” posed by the cryptocurrency, according to a government report published on May 21.

Regulatory measures in other regions of China

Regulators have recently attacked bitcoin mining in four other regions of the nation Asia , specifically in Inner Mongolia, Xinjiang, Qinghai and Yunnan.

In the case of Inner Mongolia, CriptoNoticias reported that the authorities would revoke the licenses of telecommunications companies and of information technologies involved in the mining of Bitcoin and other cryptocurrencies.

With respect to Yunnan, the measures were similar to those of other provinces. cias. This region is positioned as the fourth largest in China in terms of hashrate , according to the Cambridge Bitcoin Electricity Consumption Index (CBECI).

In Yunnan from September 2019 to April 2020, 7% of the global hash rate was obtained, followed by Inner Mongolia, Sichuan and Xinjiang.

The underground of bitcoin

Last May, CriptoNoticias reported that China prohibited financial institutions and payment companies from providing services related to cryptocurrency transactions.

For this reason, the clandestine use of over-the-counter cryptocurrency platforms have increased their operations since exchanges were banned in 2017. Although it is unknown what these platforms are.

The Government Chinese consider that cryptocurrencies Assets are a risk because they are “not backed by a real value” and because of their high volatility in the market.

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