China’s Crypto Clampdown Extends to Xinjiang and Qinghai

Two more regions in China have declared crypto mining suspensions and bans. That is after the recent government moves to employ stiffer regulations on the crypto market. Keep in mind that the country has been launching crypto clampdowns since last month, citing energy usage and financial risks.

On Wednesday, Qinghai declared banning all mining deals in the northwestern province.

Crypto mining involves intensive computer processes to verify cryptocurrency transactions. The region plans to shut surviving amenities and stop any new cryptocurrency projects.

Qinghai declared that it had to consider the move after the central government launched crackdowns targeting the crypto mining sector due to high emissions, energy usage, and financial risks.

At the same time, Xinjiang regions announced the suspension of mining activities. Keep in mind that the region houses multiple crypto mining companies. One company that manufactures its coal-fired energy received directions to inspect its services if its power consumption adheres to the electricity-saving objectives.

Keep in mind that China has been a cryptocurrency core for a long. Almost two-thirds of BTC global mining comes from this nation, and Xinjiang accounts for around half of the mining.

After restricting crypto trading in the past year, in 2021, the Chinese government targets mining activities. That is because the operation involves high electricity usage, contrary to the nation’s goals to limit power usage and decrease Chinese carbon pollution.

In March, Inner Mongolia had to ban crypto mining activities after failing to achieve its power reduction targets.

Most miners vacated to Sichuan province, a mining hub in southwest of China. The region depends on hydropower dams for electricity. However, their suggestion that crypto mining is safe with renewable energy proved unconvincing. That is after Sichuan told the crypto activities to operate up to September only.

As much as renewable energy accounts for 60% of Qinghai’s power, a crypto mining CEO told sources that miners in this region depend on coal-fired power also. He stated that they rely on wind and solar during the day and thermal power and wind rule the nights.

Meanwhile, Weibo had all crypto promotional accounts banned at the start of the week.

Leave a Reply

Your email address will not be published.