China plans to deter bitcoin miners by curbing electricity use

Chinese officials are concerned that bitcoin miners are taking advantage of low power prices in some areas and affecting normal electricity use in some cases, the people said. Local officials have been asked to investigate the high consumption associated with the industry, they said. Some Chinese miners have set up around hydroelectric facilities in the provinces of Sichuan and Yunnan.

The curbs will also involve other regulators such as the National Development and Reform Commission (NDRC), which oversees the power supply. The PBOC didn’t immediately respond to a fax requesting comment sent after the close of regular business hours.

“This may have contributed to bitcoin coming off its daily highs and electricity usage certainly appears to be a significant challenge for the cryptocurrency in the years ahead,” said Craig Erlam, senior market analyst at online trading firm Oanda in London.