Home Business Sichuan, China’s second largest mining farm, cracks down on cryptocurrency mining… Bitcoin Fall

Sichuan, China’s second largest mining farm, cracks down on cryptocurrency mining… Bitcoin Fall

by news dir
Countries around the world are pulling their swords into virtual assets (Photo=AFP)

[베이징=이데일리 신정은 특파원] While the Chinese central authorities have declared a complete ban on mining of cryptocurrencies (virtual assets) such as Bitcoin, Sichuan Province, which has the second largest number of mining farms in China, also pulled out a knife.

According to the Chinese economic media Deecharging on the 20th, the Sichuan government announced that it would complete the complete closure of cryptocurrency mining companies by this day. Sichuan authorities have already identified 26 suspected mining companies and have cut off electricity supply to them.

Sun Wei, a professor of Electronic and Information Engineering at Zhongshan University, said, “Local governments in Sichuan and other provinces are starting to become wary of energy-consuming cryptocurrency mining. It consumes a lot of energy, but it does not bring real innovation, economic benefit or social value to the region.”

China, which accounts for more than half of the world’s cryptocurrency mining, is shutting down mining farms in a chain. Sichuan Province is a provincial-level administrative region in China that has officially announced the complete closure of mining farms, following Inner Mongolia Autonomous Region and Qinghai Province. On the 9th, Changjizhou of Xinjiang Uyghur Autonomous Region issued a notice about the immediate cessation of production of cryptocurrency mining companies.

According to Reuters, the four major mining areas in China are Inner Mongolia, Xinjiang Uygur Autonomous Region, Yunnan and Sichuan. Cambridge University ranked Sichuan as the second largest bitcoin mining region in China.

The industry is also being affected by crackdowns on mining in the region with the largest number of mining farms in China. According to the domestic cryptocurrency exchange Upbit on the 20th, at 8:24 a.m. on the same day, the price of bitcoin was 42,252,000 won. It was down 0.8% from 24 hours ago. The price of Ethereum also fell by 2.2% to 2591,000 won. Ripple fell 3.8% to 909 won, and Dogecoin fell 1.4% to 343 won.

Since 2017, the Chinese government has gradually tightened regulations, including closing cryptocurrency exchanges and banning new issuance and trading. In particular, last month, the State Council of China declared that “Bitcoin mining and trading activities must be resolutely prevented from transferring individual risks to the whole of society.” At the same time, China is actively promoting the issuance of ‘digital yuan (e-CNY)’, a legal digital currency issued by a central bank with strong central control.

Chinese President Xi Jinping also promised to make China carbon neutral by 2060 to make China a climate leader. The goal is to peak carbon emissions by 2030 and achieve carbon neutrality by 2060.


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