Bitcoin Miners in Sichuan Should Stop: Report

According to local news channel PANews, after a meeting on June 17, the Bureau of Science and Technology and the Sichuan Ya'an Energy Bureau advised Bitcoin mining operators to shut down before June 25. The news outlet named "insider" as the source of information. Mining refers to the energy-intensive process in which private computers acquire crypto to verify transactions on a blockchain network. An official document seen by local crypto journalist Colin Wu stated that 26 mining companies should shut down. Decrypt has not yet reviewed this document. Electric companies have also informed miners in the area that they will be closed until further notice to investigate where electricity is going. The document identified 26 major mining projects and needed to be monitored and closed. Currently, the hashrate of Bitcoin and Ethereum do not fluctuate. — Wu Blockchain (@WuBlockchain) June 18, 2021 Authorities include miners powered by cheap hydropower plants in the latest measures. Sichuan, a region in southwestern China, is popular with Bitcoin mining companies because of the cheap hydroelectric surplus produced during the Chinese rainy season, which starts in May and ends in September. Sichuan Province (red). Source: Wikimedia The latest news differs from the messages earlier this month. According to Chinese technology company Technode, miners reportedly have until September to leave Sichuan. Pressure continues on mining in China Sichuan is the fifth province in China to exert strong pressure on mining companies. In May, the State Council of China, a top government cabinet, included Bitcoin mining on a laundry list of financial risks that require monitoring. This announcement marks the first time the State Council has made an explicit reference to Bitcoin mining. China's central bank banned crypto in China in 2017. Shortly after, the province of Inner Mongolia issued these new rules:

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