On December 29 report, Asia Times pointed out that during summer season, which begins in October and goes through April, the power supply declines sharply in Southwest China.
That is the reason for local Chinese authorities to clamp down heavily on mining firms.
Bitcoin mining firms are legally not allowed, but tolerated in the Sichuan province during rainy season as more than required electric power is generated by hydro power stations which make use of the abundance rain in East Asia.
Chinese authorities making an effort to guarantee adequate power supply during summer season for domestic companies and residents.
Therefore, the authorities have turned their concentration on various Bitcoin firms, which utilize excessive power to operate their mining rigs.
Chinese authorities not only ensured shut down of crypto mining farms but also cracked down on power plants offering energy supply to crypto mining firms.
Two power plants were slapped with fines of roughly $140,000 in December for supplying electricity to Bitcoin mining firms without necessary power supply license.
China continues to battle against illegal use of power by crypto miners who currently represent 66% of global hash rate.
Last month, Chinese regulators in autonomous region of Inner Mongolia carried out a thorough search to disband cryptocurrency mining companies in that region.
Earlier this month, Chinese authorities confiscated about 7,000 crypto mining machines that were consuming power without approval from government.
The seizing happened when authorities conducted search of more than 70,000 households, 1,470 communities, 3,061 merchants, and also factories, courtyards and mines in the Kaiping District of Tangshan city.