Sichuan miners ordered to halt operations by June 20

Authorities in China’s Sichuan province have ordered the shutdown of operations by “key” miners and barred local energy companies from supplying them with electricity. 8btc reported, citing a government notice.

China may lost its last space for #Bitcoin mining.

Sichuan Development and Reform Commission and Energy Bureau issued a notice today, requires to shutdown 26 «suspected key projects» of virtual currency mining before June 20. pic.twitter.com/UI4jdMS48E

— 8BTCnews (@btcinchina) June 18, 2021

According to the portal, on June 18 the Sichuan Development and Reform Commission and the local Energy Department issued a notice listing 26 cryptocurrency mining enterprises whose activities must be halted by June 20.

According to the document, all provincial energy companies are required to stop supplying electricity to miners and report to the regulator by June 25. Local supervisory authorities are also conducting checks to identify cryptocurrency mining operations. The province-wide ban forbids issuing work permits to new companies in this sector.

According to journalist Colin Wu, Sichuan and Yunnan provinces have many small hydropower plants that may continue to work with miners. However, large-scale operations will be shut down in the near term.

There are many small and medium-sized hydropower stations in Yunnan, Sichuan, and it may be difficult for them to receive government supervision. However, large-scale projects will be shut down in the short term.

— Wu Blockchain (@WuBlockchain) June 18, 2021

The Chinese portal PANews, citing an anonymous source, also reported that on June 17 officials from the relevant authorities, including the energy and technical departments, held a meeting and decided to curb cryptocurrency mining operations.

Miners based in the province allegedly received notices directing them to close their sites at 22:00 local time (17 June at 17:00 MSK) for self-inspection.

In Sichuan, miners primarily draw on surplus hydropower. From May to October is the province’s “high-water” season — during this period, the output of local power plants increases, providing surplus energy and low tariffs.

Earlier reports said that Sichuan authorities will allow local miners to operate until the end of September.

In May 2021, Vice Premier Liu He said authorities planned to take measures against cryptocurrency mining and Bitcoin trading.

In the same month, Xinhua News Agency criticised digital gold and the methods of its extraction.

As reported, restrictions on cryptocurrency mining have already been imposed by three Chinese provinces: Yunnan, Qinghai and Xinjiang. The authorities of the Inner Mongolia Autonomous Region have also launched a crackdown on illegal mining.

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