Due to its cheap electricity, the Chinese province was popular with miners. Now the regional authorities have banned the mining of cryptocurrency.
The authorities of the Chinese province of Sichuan, a major center for the extraction of cryptocurrency, have banned mining. The Sichuan Energy Bureau, together with the local Development and Reform Commission, have approved measures to prevent the extraction of digital currencies in the region, writes The Block .
The new rules will primarily affect the 26 official mining companies. Also, the authorities will take action against small miners who receive electricity privately.
Until June 20, state energy companies must turn off the power supply to 26 officially registered miners who worked in special industrial zones for the consumption of hydropower. These zones were created to solve the problem of excess electricity in the region during the summer rainy season.
Also, the authorities will monitor the supply of electricity to small private miners and stop them. By June 25, a report on the results of this work will be prepared.
The mining of cryptocurrencies has been banned at the state level in three Chinese provinces. This has already been announced by the authorities of the regions of Yunnan , Qinghai and Xinjiang . In this regard, large miners are leaving the country .
This happened after Vice Premier of the State Council of the People’s Republic of China Liu He called for tougher regulation of the mining and trading of cryptocurrencies at the end of May .
