According to a recent report, City officials in the Yunnan Province have restricted electricity supply from Bitcoin miners. The electricity producers in the region were directly given orders not to provide power to cryptocurrency miners.
Chinese crypto reporter Colin Wu carried the report, as China’s strained relation with crypto miners continues.
In April last year, China’s state planner opined that Bitcoin mining causes adverse effects on the environment and wanted it banned. But that idea was quashed as it wasn’t included in the industries the country needs to eliminate because of their environmental impact.
Wu also tweeted yesterday that many miners in the region have told him about the ban. They shared scanned documents of official documents from the government to the power producers.
New order more of demand for economic interest
According to the miners, Wu said Yunnan miners would generate their power themselves as the power stations have been asked to stop providing power to them. Yunnan is the third-largest crypto mining province in China, and it’s bubbling with mining activities from different miners scattered across the region.
Wu also said the ban was probably a result of the environmental updates issued from a localized economic point of view, but not to stop crypto mining in the region.
“The attitude of China local power companies towards crypto mining is often changing,” Wu said, adding that it’s less of a demand for political pressure and ore of economic interest.
The ban is coming at the time the global hash rate dropped from 140 EX/s. To 125 EX/2, which is about a 10% drop. Yunnan has a 5.42% hash rate, ranked above all countries, except Kazakhstan, Russia, the United States, and China.
Chinese Bitcoin miners facing a series of issues
In June, authorities in the same Chinese rejoin asked 64 facilities to stop mining and operations for what they say is the operation without the right approvals.
Although the region is reputable for wasting electricity, Yunnan’s war on Bitcoin and cryptocurrency miners is obvious.
Even after China removed Bitcoin mining from a list of industries not wanted by the Chinese government, Bitcoin miners in China face a series of issues.
A recent report revealed that 74 percent of the miners in Chiners are not finding it easy to pay for electricity bills because of a massive freeze on card payments linked with cryptocurrency transactions.
Seven of those mining facilities were still under construction, as the government said the reason for its action is preventing security risks and tax evasion. The government said the way the mines are connected to the power grid could be dangerous.
The restriction is also one of the Beijing government’s measures to tackle money laundering activities in the industry.
Within the same month, thousands of units were incinerated when a local Bitcoin mine caught fire. And on May 29, a hydropower station in the region was involved in an explosion. This led to a more stringent rule concerning hydropower plants in the region.