China Slashes Over 90 Percent of Bitcoin Mining Capacity Amid Nationwide Crackdown
Chinese authorities order the immediate shutdown of major Bitcoin mining operations in Sichuan province, effectively eliminating over 90 percent of the country's mining capacity. Miners are now scrambling to move their equipment overseas as regulators enforce a uniform ban to curb financial risks.
Authorities in Southwest China's Sichuan Province order an immediate halt to Bitcoin mining operations, effectively shutting down one of the country's largest cryptocurrency mining bases. This latest local ban forces electricity companies to cut power to 26 flagged mining enterprises by Sunday and prohibits the approval of any new projects.
The shutdown in Sichuan means that over 90 percent of China's total Bitcoin mining capacity goes offline, at least in the short term. The move shatters industry hopes that Sichuan's abundant rainy-season hydropower would earn the region an exception from the nationwide crackdown.
Chinese regulators demonstrate a uniform approach to eliminating crypto mining in order to curb speculative trading and control financial risks. As a result of the closing exit window, many displaced miners suffer huge financial losses and scramble to relocate their mining devices to overseas facilities.