Bitcoin

Authorities have turned off electricity for Bitcoin miners in China’s Yunnan Province

National sources report that Baoshan City Council in Yunnan Province, China is stepping up efforts to crack down on Bitcoin minersand ordered the power producers to cut off power to the town’s miners.

Chinese reporter Colin Wu tweeted about it on November 30th Several miners had informed him of the ban and given what appeared to be scanned copies of official documents to power producers::

However, Wu added this The ban was likely based on localized “economic interests” and this is likely not an indication of Beijing’s desire to end cryptocurrency mining::

“The impact of this incident need not be overestimated. The attitude of Chinese energy companies towards cryptocurrency mining is changing frequently. It is more of a demand for economic interests than political pressure. “

Authorities have turned off electricity for Bitcoin miners in China’s Yunnan Province
Authorities have turned off electricity for Bitcoin miners in China’s Yunnan Province

The ban appears to have coincided with a 24-hour drop in the global hash rate of around 10%of 140 exahashes per second at 125 EX / s, although the correlation is far from causal.

According to Cambridge University’s Bitcoin Electricity Consumption Index (BECI) Yunnan was the fourth largest region in China as measured by the mining hash rate, behind Xinjian, Sichuan and Inner Mongolia, as of April 2020. Yunnan then made up 5.42% of the global hash rate, outperforming all countries except China, the United States, Russia, and Kazakhstan..

In June, Wu reported that the Yunnan government had ordered the closure of 64 unauthorized mining operations., including seven that were still under construction. The government cited tax evasion and security risksincluding the way the mines were connected to local hydroelectric plants.

In the same month, a local bitcoin mine caught firewhat the combustion of thousands of units.

Mid-year action also followed a May 29 explosion at a Yunnan hydropower station, killing six people and injuring five.. The explosion was believed to have increased enforcement of hydropower safety regulations in the area.

In April, The Yunnan State Electricity Network also issued a document warning power generators of unauthorized powering of the Bitcoin mines.

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