BEIJING: Local authorities of China’s province of Yunnan ordered an investigation to probe the alleged illegal use of electricity for mining bitcoin.
Yunnan is China’s fourth-biggest crypto mining province where bitcoin mining is illegal like other provinces in the country.
According to SCMP, the authorities ordered to shut down bitcoin mining that may be the safety risks due to usage of electricity. Likewise, the Yunnan Energy Bureau also warned that it would stop supplying power to anyone who illegally uses electricity to mine the cryptocurrency.
According to Bloomberg, China is against bitcoin mining and trading due to climate concerns. Authorities have attributed a spike in electricity consumption and rising demand for coal in China to server farms underpinning bitcoin and other cryptocurrencies.
According to the Cambridge bitcoin Electricity Consumption Index, China accounts for 65% of the world’s bitcoin hash rate but authorities are now cracking down on the mining and trading of the cryptocurrency.
Three industry bodies including the National Internet Finance Association of China, the China Banking Association, and the Payment and Clearing Association of China in a joint statement described the reason for clamping down on the digital assets trading market.
The statement said that cryptocurrency prices had skyrocketed and speculative trading of cryptocurrency had rebounded, adding that it was infringing the safety of people’s property and disrupting the economic order.
Other bitcoin mining hubs including Inner Mongolia, Xinjiang, and Qinghai, also issued notices to shut down crypto mines in their regions.
Inner Mongolia started a crackdown on miners in February and it shut down 35% of bitcoin mining companies by the end of April.
Likewise, Qinghai also ordered a crackdown on bitcoin mines and banned businesses including data centres, industrial parks, and power stations from providing land and power to cryptocurrency-related projects. Xinjiang, which accounts for nearly 35% of China’s global bitcoin hash rate, also ordered bitcoin miners to cease operations.