The Chinese government has been cracking down on Bitcoin for a long time now. The latest assault has been the participation of Sichuan province in the move to erase the cryptocurrency mining industry in China. The prohibition of Bitcoin mining in Sichuan was passed on June 20, 2021. Ya’an Energy Bureau of Sichuan met with the members of the Science and Technology Bureau to discuss the steps to be taken for compliance with the nationwide ban on cryptocurrency mining and trading services. It was concluded in the meeting that the miners would have to wrap their mining business by June 20, 2021.
The participation of Sichuan in the cryptocurrency ban is a huge blow for the crypto industry. The province happens to be home to the biggest Bitcoin mining corporations in the world. It is the lowest electricity tariff rates and the easy availability of cheap hydroelectric power that had made Sichuan the hotspot for cryptocurrency miners. The Sichuan authorities have released an ultimatum for the miners and passed an order to put an end to the mining business by June 25, 2021. The Chinese government has already done away with more than 90% of cryptocurrency mining operations across the country. This eradication has staggered around 35% of the Bitcoin hash power of the world. The Bitcoin miners of China are desperately fleeing the country to protect themselves against the crypto ban.
According to the interview reports of Global Times, cryptocurrency miners are in a state of shock as they had never expected Sichuan to impose a ban on mining services. The CEO of BankLedger, Shentu Qingchun, said in one of the interviews that Sichuan was never supposed to impose a crackdown as the province witnesses an excessive supply of electric power during the monsoon season. Nonetheless, the Chinese government is determined to do away with cryptocurrency from the country. The Sichuan authority has also asked the power generation companies to submit reports of electricity consumption by mining corporations to keep track of the closure of cryptocurrency mining operations in the province.