After Xinjiang and Inner Mongolia, Qinghai is the next province of China to order the closure of all cryptocurrency mining companies.
China’s Qinghai Province Ordered All Crypto Mining Companies Closed
China’s Qinghai province has announced a new ban on virtual currency mining, a government document released Wednesday, June 9 today.
Qinghai is the latest coal-based crypto mining hub to be set up that has made it clear that the industry is completely out of the way. The news comes after another announcement of a crackdown against some crypto miners in Xinjiang and follows Inner Mongolia, which previously imposed restrictions on miners..
This document is released by the Qinghai Department of Industry and Information Technology, a division of the provincial government.
The local government cited central government concerns about energy-intensive industries and environmental pollution as well as the State Council’s directive to maintain financial stability by cracking down on Cryptocurrency mining and trading are two reasons why they will eliminate all mining operations in the province.
China’s bitcoin (BTC, +15.45%) miners use a mix of coal and hydro to power their miners, depending on the season. In particular, the use of coal has attracted attention from the government, which is looking for ways to reduce carbon emissions.
China’s State Council, one of the highest government bodies in the country, has asked local governments to crack down on cryptocurrency mining and trading in May.
The Chinese government has been trending in this direction for some 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 companies use. Mining company took advantage.
Earlier this year, when several coal plants shut down due to accidents at local mines, bitcoin’s hashrate (a measure of how well computing secures the network) fell by more than 16%.
The price of Bitcoin, which has surged by nearly $4,000 in the past 24 hours as El Salvador recognizes the cryptocurrency as legal tender, has dipped slightly on the news.
China’s Qinghai Province Ordered All Cryptocurrency Mining Companies Closed- Details That Document Mentioned
The Qinghai government will ban any local government from setting up or allowing any new crypto mining projects. It will also shut down all current cryptocurrency mining operations in the province.
The Qinghai government will strictly inspect and punish any project that operates mining operations in the name of a big data center or a supercomputer center. It would ban any company from providing venues or electricity to cryptocurrency mining projects.
The government will carry out follow-up inspections and randomly select companies for inspection. It advises companies to prepare for the relevant paperwork 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 saving department of the Qinghai provincial government by June 20.
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