Chinese province cracks down on illegal bitcoin operations 

Yunnan, a province in China, has threatened to cut power on any facilities that will be caught using stolen electricity to power crypto mining operations.

Authorities would also shut down any bitcoin facilities that may pose widespread damage related to electricity.

Yunnan is the fourth-largest province in China. It also has the biggest bitcoin “hashrate” in the country.

Hashrate refers to the amount of computing and processing power being contributed to the network through mining.

Yunnan is also China’s second-largest hydropower-producing province, which is one of the main reasons why it is one of the country’s hotspots for mining operations.

Crackdowns here and there

Authorities in Inner Mongolia have already evicted crypto miners as early as February this year and have closed down 35 bitcoin mining companies at the end of April.

The province of Qinghai has also followed suit by releasing an order banning power stations, data centers, and industrial parks from providing resources to any crypto companies.

This has caused crypto mining farms in China to either relocate or totally close operations.

Diminishing hashrate dominance

China controls 65% of the globe’s hashrate. In fact, 35% of the world’s hashrate are coming solely from the province of Xinjiang. Other global hashrate contributors are Sichuan and Inner Mongolia.

But China’s huge hashrate may erode quickly with the government’s non-stop crackdowns on crypto-related operations in the country.

In fact, in an estimate published by industry journal Miner Daily, China’s hashrate dominance has plunged 55% this year, and it is expected that these numbers would further go down.

Even with most bitcoin mining operations using renewable energy, this hasn’t stopped Chinese authorities from hunting down illegal crypto operations in the country.

 

Image courtesy of Cointelegraph News/YouTube

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