Chinese Authorities Pressure Bitcoin Miners to Scale Down Operations
Authorities in Sichuan, China has been reportedly pressuring Bitcoin miners to scale down their operations due to electricity shortages. During the dry season, extending from October to April, the electricity supply drops in the province.
China has been reported to have been controlling two-thirds of the global Bitcoin hashrate, while Sichuan has been accounted for over 50%. From May to September, the wet season has been advantageous for miners as the province’s hydropower energy has been abundant. During the dry season, local authorities made sure to allow sufficient power supply to go through for residents and local businesses, rather than mining farms, where excessive amounts of electricity are used to run their mining operations.
The Sichuan Garze Tibetan Autonomous Prefecture’s local government demanded a cleanup of the region’s mining sector, as reported by the Asia Times.
Authorities in the region have come together to discuss the issue, including regulatory agencies, tax administration, and the local branch of the state grid operator.
In mid-November, the regulators in Inner Mongolia, the Autonomous Region in China, tightened their grip on crypto mining companies to clean up the rectification of crypto mining companies in the region.
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