China’s Yunnan province Shuts Down Power to Bitcoin Mining Facilities December 1, 2020 December 1, 2020 Kelly Cromley http://1AZFjzw2#Nwf63pYaMWq#xIY
Bitcoin NewsDecember 1, 2020 by Kelly Cromley

China’s Yunnan province Shuts Down Power to Bitcoin Mining Facilities

Domestic sources reveal that Chinese government officials from the city of Baoshan in Yunnan province are bolstering their initiatives to clamp down on Bitcoin miners, directing electricity generation companies to stop providing power to the mining facilities.

Earlier yesterday, Colin Wu, a Chinese reporter focused on crypto, tweeted that numerous miners had confirmed him about the prohibition and shared what seems to be duplicate copies of official order issued to power generators:

Nevertheless, Wu stated that the prohibition was likely based on local “economic interests,” and hopefully not signaling a will to crush crypto mining activity by Beijing:

“There is no need to overestimate the impact of this incident. The attitude of China local power companies towards crypto mining is often changing. It is more a demand for economic interests than political pressure.”

The prohibition seems to have occurred along with a 24-hour decline in worldwide hash rate of about 10% to 125 exahashes per second from 140 exahashes per.

As per data provided by Cambridge University’s Bitcoin Electricity Consumption Index (BECI), Yunnan takes the fourth place in the list of China’s provinces contributing to mining hash rate in a big manner, next only to Xinjian, Sichuan and Inner Mongolia as of April 2020.

Yunnan then accounted 5.42% of worldwide hash rate, placing it above all nations with the exceptions being China, the US, Russia and Kazakhstan.

Back in June, as per Wu, Yunnan’s government had directed closure of 64 unauthorized mining facilities, including seven undergoing construction. The government underlined nonpayment of taxes and safety threats, including the manner in which mines were linked to domestic hydropower stations.

Furthermore, in the same month, there was a fire accident in a domestic Bitcoin mining facility, causing burning of thousands of units. The mid-year clamp down began after a blowup at Yunnan based hydropower station on May 29, resulting in a loss of six lives and wounding five.

The blast is perceived as the reason behind stringent enforcement of security criteria regarding hydropower plants in the zone.

Back in April, Yunnan’s state grid also disbursed a document cautioning electricity producers against the illegal routing of power to Bitcoin mining centres.

AuthorKelly Cromley

Kelly is our in house crytpto researcher, delving into the stories which matter from blockchains being used in the real world to new ico coming out.