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Qinghai, China bans crypto asset mining

Cryptocurrency

Qinghai Province, located in western China, announced on June 9 that it will ban crypto asset (virtual currency) mining.

Qinghai Province is a region where coal-fired cryptographic asset mining is active, but the business will be completely eliminated. In the Xinjiang Urad Autonomous Region and Inner Mongolia Autonomous Region, crackdowns on mining companies (miners) have already begun.

The announcement was made by the Industrial Information Technology Bureau of Qinghai Province.

Qinghai cites two reasons for banning mining: the central government’s concerns about energy-intensive industries and environmental pollution, and the State Council’s policy of maintaining financial stability by cracking down on crypto asset transactions. ..

Bitcoin (BTC) miners (mining companies) in China use thermal power generation and hydroelectric power generation properly according to the season, but thermal power generation in particular is a target of the government aiming to reduce carbon dioxide (CO2) emissions. ing.

In May, the State Council, one of China’s highest institutions, ordered local governments to mine crypto assets and crack down on transactions.

The Chinese government has been promoting this policy for some time. In April, the Inner Mongolia Autonomous Region enforced restrictions on mining, and Sichuan Province, which is also active in crypto asset mining, has indicated that it may abolish the energy policy that favored mining companies.

Bitcoin’s hash rate dropped by more than 16% in early 2021 when many thermal power plants were shut down due to a mining accident.

| Translation: coindesk JAPAN
| Editing: Takayuki Masuda, Shigeru Sato
| Image: Image of Qinghai Province, China (Shutterstock)
| Original: China’s Qinghai Province Has Ordered All Crypto Miners to Shut Down

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