The current ban on cryptocurrency miners in China has begun in Sichuan, a province in southwest China.
The province has identified 26 suspicious mining projects it intends to investigate and perhaps close down by June 20, as per PANews, a Chinese cryptocurrency news organization.
According to the article, authorities in Sichuan have instructed local governments to begin investigating establishments and close down those that they suspect of mining cryptocurrency.
It also stated that firms that provide electricity for miners should conduct internal audits and cease providing power to individuals that mine digital currencies.
China produces half of the world’s Bitcoin, but the Chinese government’s new restriction on cryptocurrency mining has put miners in the area in risk. Some have even moved to crypto-friendly neighboring nations.
China’s larger anti-mining action
The Chinese government is cracking down on digital currency mining in the nation in the aim of reducing the sector’s financial dangers.
Mongolia, for example, has expressed worry about the increasing usage of environmentally damaging fuels like coal for Bitcoin mining.
Miners in Sichuan, on the other hand, mostly exploit the province’s abundant hydropower to validate Bitcoin (BTC/USD) transfers. The province’s action demonstrates that China’s crackdown has a wider range than previously thought.
A ban has also been implemented in other parts of the world
According to figures provided by the University of Cambridge, Sichuan is China’s second-biggest Bitcoin mining province.
Some miners move their operations there during the rainy summer months to take advantage of the abundant hydropower electricity.
Mining prohibitions have since been implemented in other local mining areas like Yunnan, Inner Mongolia, and Xinjiang.
The latest mining ban in Sichuan demonstrates that even those that mine using renewable energy are not exempt from the ban.