China’s bitcoin crackdown: Fourth-largest bitcoin-producing province joins the country’s moves against crypto mining

Yunnan, which ranks fourth in China in terms of bitcoin hashrate, has promised to shut down any company in violation of the new rules by the end of June

China accounts for 65 per cent of the global bitcoin hash rate, according to the Cambridge Bitcoin Electricity Consumption Index

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LAN network cables are plugged into a bitcoin mining computer server. Photo: Reuters

Published: 3:00pm, 13 Jun 2021Updated: 3:00pm, 13 Jun 2021

Yunnan provincial authorities issued a notice ordering an investigation into the alleged illegal use of electrical power by individuals and companies involved in bitcoin mining, according to a report by China Securities Journal on Saturday, becoming the latest region to join the country’s crackdown on the practice.

The Yunnan Energy Bureau said it would cut the power supply to anyone illegally using electricity for bitcoin mining as well as for such users that evade electricity bills, according to the report. The authorities will also shut down bitcoin mining operations that may pose a safety risk related to their electricity usage.

Yunnan, which ranks fourth in China in terms of bitcoin hashrate – a measure of the network’s computational power – has promised to shut down any company in violation of the new rules by the end of June.

Yunnan is the latest to join China’s crackdown on bitcoin mining. Inner Mongolia, Xinjiang and Qinghai have also issued notices to shut down part or all of the mines in their regions.

A small toy figurine is seen on representations of the bitcoin virtual currency displayed in front of an image of China’s flag in this illustration picture. Photo: Reuters

The provincial industry and information technology authorities in Qinghai ordered bitcoin mines to shut on Wednesday and also banned businesses like data centres, industrial parks and power stations from providing cryptocurrency-related projects with land and power, according to a notice cited by state-owned Xinhua News Agency.

China’s bitcoin crackdown: Fourth-largest bitcoin-producing province joins the country’s moves against crypto mining

Yunnan, which ranks fourth in China in terms of bitcoin hashrate, has promised to shut down any company in violation of the new rules by the end of June China accounts for 65 per cent of the global bitcoin hash rate, according to the Cambridge Bitcoin Electricity Consumption Index

Yunnan, which ranks fourth in China in terms of bitcoin hashrate, has promised to shut down any company in violation of the new rules by the end of June

China accounts for 65 per cent of the global bitcoin hash rate, according to the Cambridge Bitcoin Electricity Consumption Index