China Requires Miners in Strategic Energy Region to Shut Down Operations Today, Community Expects BTC Hash Rate Drop

u.today 09 June 2021 09:50, UTC
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The Chinese region of Xinjiang clamps down on local miners, requiring local mining companies to discontinue operations by 2:00 p.m. local time today, June 9, for rectification.


China's shutting down crypto mining in a "strategic energy region"

Xinjiang is often called China's "strategic energy region" for its vast natural gas, coal and other fossil resources. Now, a drop in the Bitcoin hash rate may be expected after miners in this region shut down their equipment.

The news was shared by Blockbeats, the outlet that follows blockchain and crypto news in China.

The order to the miners was issued by the Changji Prefecture Development and Reform Commission. Once the work of the rigs is suspended, miners should report this to the commission.

Chinese crypto influencer and founder of Primitive Ventures, Dovey Wan, has tweeted that Xinjiang is now following Inner Mongolia's example in shutting down Bitcoin mining.

She calls Sichuan province the "last hope" for miners in China now. She now expects Chinese authorities to start action against crypto trading, including OTC, and believes that this mining ban should have been priced in.

China's goal to reduce the CO2 emissions

As reported by U.Today earlier, Chinese president Xi Jinping had announced that, starting in 2026, China will begin to call off high-energy-consuming projects in order to reduce the carbon footprint produced by the country's industries.

Cryptocurrency mining is among the "projects" that are being clamped down on already, which is making some miners leave China for other jurisdictions with friendlier laws and cleaner, cheaper energy sources.


Crypto News is the news aggregator about cryptocurrency, ICO, mining and blockchain.

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