Recently, it was revealed that, in yet another step towards banning crypto mining in the country, the Chinese government had ordered miners in China’s Yunnan province to cease operations immediately.
At that time, however, there was still a belief that China would at least leave miners in the Sichuan province alone, because there is a lot of use of energy from hydroelectric dams. Which is clean energy.
Still banned in Ya’an
Nothing turned out to be less true. The local Chinese government in the city of Ya’an has decided after a meeting on Thursday to order bitcoin mining farms to stop mining, according to Bloomberg. They must do this before June 25. Basically immediately.
Yu’an is a large city in the Chinese province of Sichuan. Estimates assume that at least 10% of bitcoin mining companies are located in Yu’an. Until fairly recently, it seemed that Sichuan would not take any action against bitcoin miners for the time being. Unfortunately, this now appears to be the case.
According to Cinese crypto blogger Colin Wu, more and more jurisdictions within the Sichuan province will follow. In any case, miners are already feeling the downpour.
The hashrate of Ethereum (ETH) fell by at least 7% after China announced these measures, resulting in slower transactions on the network.
Transition to reduced carbon emissions
Perhaps the most important motivation for China to take such tough action against miners in the country is the climate.
In a speech at the United Nations General Assembly in February, President Xi Jingping already announced that China wants to reach its absolute peak in carbon emissions by 2030, after which the country should be completely carbon neutral by 2060.
Whether this goal is attainable is irrelevant in this matter. In any case, China seems to be doing everything it can to achieve this goal. This is also why there is so much action against miners.
Ultimately, this trading of China bitcoin and other cryptocurrencies will do little damage. Miners simply move to other countries where such draconian measures are not the order of the day.
In May it was already revealed that large numbers of miners in China have already moved to the United States, among others. The US state of Texas welcomed these miners with open arms.