China’s Qinghai Province ordered the shutdown of all crypto miners
It follows other provinces, including Xinjiang and Inner Mongolia, in ordering miners to shut down.
China’s Qinghai province announced a new ban on virtual currency mining operations, a government document announced on Wednesday.
Qinghai is the latest coal-based cryptocurrency mining hub that is set to completely eliminate the industry. The news came on the heels of another crackdown notice against some crypto miners in Xinjiang, and follows Inner Mongolia, which had previously imposed restrictions on miners.
The document was issued by the Qinghai Department of Information Technology and Industry, 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 mining and trading cryptocurrencies like both. reasons why they will eliminate all mining activities in the province.
China’s bitcoin (BTC, + 9.67%) miners use a combination of coal and hydropower to power their miners, depending on the season. The use of coal in particular has drawn the attention of the government, which seeks to reduce its carbon footprint.
China’s State Council, one of the highest governmental bodies in the country, told local governments to crack down on mining and cryptocurrency trading in May.
The Chinese government has been trending in this direction for a while. Inner Mongolia implemented new regulations around 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 several coal plants closed due to accidents at local mines, bitcoin’s hash rate (a measure of how much computing power the network protects) fell by more than 16%.
The price of Bitcoin, which rose close to $ 4,000 in the last 24 hours when El Salvador recognized the cryptocurrency as legal tender, fell slightly on the news.
The translated document can be read in its entirety below:
The Qinghai government will prohibit local authorities from establishing or allowing 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 activities under the guise of large data centers or supercomputing centers. It will prohibit any company from providing venues 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 paperwork and other supporting evidence in case of inspections.
Local authorities must provide further updates on the implementation of these measures to the Qinghai provincial government’s energy saving department before June 20.
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