Sichuan Province Considers Bitcoin Mining Ban Amid China's Wider Crackdown
Chinese energy regulators in Sichuan are preparing to assess the impact of shutting down local Bitcoin mining operations. This potential ban follows a recent central government crackdown and a similar shutdown already enforced in Inner Mongolia.
Energy regulators in China's Sichuan province call a meeting to discuss potential policies for shutting down cryptocurrency mining operations. This move marks a significant escalation in China's intensifying crackdown on virtual currencies, following a May 21 announcement by central financial regulators that specifically targets the energy-intensive mining process. China currently hosts approximately two-thirds of all global Bitcoin mining operations.
The proposed shutdown in Sichuan directly follows a strict ban implemented in Inner Mongolia after the northern region failed to meet its energy use reduction targets. Inner Mongolia recently proposed even harsher punishments and stricter inspections to enforce this ban, signaling a sharp shift away from the previous local government practice of welcoming miners who consume excess electricity.
Sichuan's energy supervision office schedules a June 2 meeting with power grid operators and energy suppliers to fully understand the local mining landscape. Unlike coal-dependent Inner Mongolia, Sichuan relies heavily on hydropower, leading many cryptocurrency insiders to previously view the province as a potential safe haven for their operations. Miners across China watch closely as they wait for the outcome of this critical assessment.