Is the southwestern Chinese province of Yunnan preparing to ban cryptocurrency mining?
On Friday June 11, a crypto industry source told Forkast.News that his company was preparing to shut down its crypto mining operations in Yunnan as a result of a government notice. The Paper, a respected Chinese news site based in Shanghai, also reported on a new government ban on crypto mining in Yunnan that was circulated online and that mining machines were shut down. The Paper cited an unnamed mining company as the source of its story.
But hours later, Chinese crypto blogger Wu Blockchain tweeted that the government documents on the Yunnan ban are false and that some crypto miners in Yunnan remained in operation. Other media also jumped into the fray.
Meanwhile, Yunnan’s energy bureau clarified that it is banning illegal Bitcoin mining activities and misuse of power by miners in the region, according to Reuters.
The authority said that it would inspect mining companies for illegal behaviors and would shut them down immediately once discovered. The campaign is expected to be completed by the end of June, according to local media.
Wu Blockchain tweeted again, citing local media reports on Yunnan’s Bitcoin mining clampdown: “Compared with thermal power regions such as Xinjiang and Inner Mongolia, hydropower regions such as Sichuan and Yunnan will be relatively tolerant of Bitcoin mining. But the miners are facing problems after the summer, and electricity supply outside of China may be more stable.”
- Recently, crypto mining bans were imposed on Inner Mongolia, Xinjiang and Qinghai.
- Miner BTC.top, which has facilities in Xinjiang, Sichuan and North America, said that given the increasingly difficult environment for crypto miners in China, it would speed up shifting its operations to North America.
- Yunnan last month suffered power shortages and imposed power supply limits starting May 10 until the end of the month, according to its energy authority.
- Chinese miners are taking action to mitigate the impact of crypto mining bans. Chinese mining rig maker Bitmain is reportedly set to meet with miners and industry insiders next week to discuss relocating mining operations overseas, as China’s ban on cryptocurrency mining is extended to more regions of the country.
- Canaan, a major Bitcoin mining rig maker, for instance, is opening its first after-sales service center outside of mainland China in neighboring Kazakhstan.