China’s Qinghai Province announced a new ban on virtual currency mining operations, a government document said on Wednesday.
Qinghai is the latest coal-based crypto mining hub expected to wipe out the industry altogether. The news came following another crackdown on some crypto miners in Xinjiang, and follows Inner Mongolia which previously imposed restrictions on minors.
the document was published by the Department of Industry and Information Technology of Qinghai, which is part of the provincial government.
The local government cited central government concerns over energy-intensive industries and environmental pollution, as well as the State Council directive to maintain financial stability by cracking down on exploitation and trade. crypto as the two reasons they will phase out all mining activity in the province. .
Chinese bitcoin miners use a mixture of coal and hydroelectric power to power their miners, depending on the season. The use of coal in particular has caught the attention of the government, which is seeking to reduce its carbon footprint.
China’s State Council, one of the country’s highest government agencies, has called on local governments to crack down on crypto mining and trading in May.
The Chinese government is moving in this direction for a certain time. Inner Mongolia implemented new regulations for energy-consuming companies in April, while Sichuan – another mining hub – said it could end a local energy policy that miners had taken advantage of.
Earlier this year, when a number of coal-fired power plants closed due to accidents in local mines, the bitcoin hashrate (a measure of the computing power that secures the network) has fallen by more than 16%.
The price of Bitcoin, which has risen nearly $ 4,000 in the past 24 hours as El Salvador recognized cryptocurrency as legal tender, fell slightly on the news.
The translated document can be read in full below:
The Qinghai government will ban local authorities from setting up or authorizing new crypto mining projects. It will also shut down all current crypto mining operations in the province.
The Qinghai government will strictly inspect and punish all projects that operate mining activities under the guise of large data centers or high-performance computing centers. It will ban any company from supplying sites or electricity to crypto mining projects.
The government will conduct follow-up inspections and randomly select companies for inspections. He advises companies to prepare for related documents and other supporting evidence in the event of an inspection.
Local authorities are required to provide further updates on the implementation of these measures to the energy conservation department of the Qinghai provincial government by June 20.
UPDATE (June 9, 2021, 15:15 UTC): Updated with additional information.