Anhui-China’s sixth province to hack mining bitcoins

Anhui is China’s sixth province to” clean up ” bitcoin mining, according to local reports. 

A similar language was used last month when Yaan, a major city in Sichuan province, also banned bitcoin mining. Anhui, however, cited lack of energy as the main factor behind the latest ban.

Mining cryptocurrency refers to the energy intensive process in which private computers earn cryptocurrency to validate transactions on the blockchain network.

Anhui province is located in eastern China, about 4.5 hours from Shanghai. Source: Wikimedia
Iran also banned bitcoin mining in May as the country struggled with summer outages caused by power outages. That ban will be lifted in September. However, the same cannot be said for Anhui retaliation. 

Given the government’s key announcement in May, the Anhui ban is likely to be permanent. At the time, the Chinese State Council included bitcoin mining on its list of financial risks it wanted to monitor closely. The mandate led to a series of mining bans in several other provinces, including Inner Mongolia, Xinjiang, Qinghai, Yunnan and the city of Yaan in Sichuan. 

Many provinces have long been hotspots for bitcoin mining because of their abundance of energy, whether it’s hydroelectric power plants or fossil fuels. 

China’s state network puts pressure on bitcoin mining
There is a small difference between the Anhui ban and the decommissioning of the other five provinces. 

Reports of the initial bans were about maintaining China’s image as an environmentally friendly country. Bitcoin mining, known for its large carbon footprint— especially in coal-rich provinces such as Inner Mongolia-contradicts this image. 

Here’s how China’s crypto-FUD will play out
Instead, Anhui is struggling with activity due to electricity shortages. This reason was much less evident in previous bans in other provinces.

Moreover, the Anhui ban appears to have been triggered by a notice from the state network company

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