According to a news report by a local outlet China Star MarketThe Energy Bureau of China’s Yunnan Province has asked its departments to inspect bitcoin mining companies in the region for illegal activities.
These inspections seek to “vigorously investigate and punish the illegal actions of power generation companies that use generated electricity to power bitcoin mining companies for illegal benefits without permission,” the alert said.
China has been home to varying restrictive measures around bitcoin mining and trading for years. But these regulatory actions escalated recently, after a terrible period statement By the country’s State Council in May.
However, Yunnan’s hydropower-based province does not ban bitcoin mining – contrary to what was first reported before Refusalsee his article later.
Apparently, the Bureau of Energy is seeking to shut down the practice of some hydropower plants of providing hydropower directly to bitcoin mining farms, allowing miners to avoid sharing their profits with the government. Instead, it appears that the regions that rely most heavily on fossil fuels are the ones receiving the ban.
Xinjiang, for example, ordered miners in its Zhundong Economic and Technological Development Zone They stop their operations. It remains to be seen whether hydroelectric-intensive regions or processes will face similar constraints.