Another Chinese province bans Bitcoin mining
Following a partial ban on Bitcoin mining operation in the Xinjiang province of China, Qinghai has become the latest region to clamp down on Bitcoin mining.
According to a document shared by crypto news site 8BTCNews, miners in Qinghai have been ordered to stop any new crypto mining projects. Furthermore, all existing Bitcoin mining operations will be suspended by the government.
Officials will be going after illegal mining farms that are hiding under the mask of big data centers. They will be punished if found wanting.
As reported by BTC PEERS, Bitcoin miners in the Zhundong Economic-Technological Development Park of Xinjiang province were ordered to suspend all mining operations earlier today. The move triggered a significant drop in Bitcoin’s hash rate.
The Xinjiang ban was a major hit for the BTC mining community since the region is a primary destination for miners during dry seasons.
The Xinjiang news is huge. Xinjiang is the largest mining location in China during dry season. Rack space in Sichuan and overseas is in insane demand. Wondering if Sichuan miners will be able to wait until end of wet season to move or will be required to stop operations earlier. pic.twitter.com/AT3d13e8yc
— Thomas Heller (@thomasheller_) June 9, 2021
In late May, Inner Mongolia released its guidelines for clamping down on illegal mining activities. Their draft included blacklisting defaulters under the social credit system.
On May 21, China’s Financial Stability and Development Committee called for a crackdown on Bitcoin mining and trading. Since then, a few provinces have moved to implement the ban.