By Hannah Perez
A city in China’s Yunnan province is forcing hydroelectric power plants to cut power to cryptocurrency companies.
Authorities in China continue to crack down on the local crypto industry
The government of Yingjiang County, located in China’s Yunnan province, has issued a warning to hydroelectric power plants not to provide power supply to companies engaged in cryptocurrency mining. Chinese news outlet IT House
According to reports, the Yingjiang County People’s Government Office issued a warning to hydropower plants to strengthen supervision of Bitcoin mining operations. Now, the power plants will have until Tuesday this week to remove mining companies from their “illegal
” supply network.
Yunnan cuts power supply to miners
The notice issued by the county office ruled that all municipalities must notify hydroelectric stations in their jurisdiction to stop providing electricity to cryptocurrency companies. It also directs them to remove any mining machines or rigs from the power plant area, if they have any, by August 24, 2021.
If they fail to meet the deadline, the State Energy Bureau plans to “forciblydismantle
” the power supply to digital currency mining establishments within its jurisdiction.
In addition, the notice adds that municipalities are required to strengthen oversight of major data plants related to or part of hydroelectric power plants. As such, it requires hydropower plants to report to China’s National Development and Reform Commission (NDRC) after decommissioning grid mining operators.
With this information, the NDRC will help Yingjiang County step up enforcement efforts to ensure that all illegal hydropower supplies to Bitcoin
miners are completely stopped.
According to the report, the Yunnan Provincial Power Bureau had previously stated that Bitcoin mining companies rely heavily on “unauthorized private access to electricity, evasion of state transmission and distribution fees, funds, and additional for-profit violations
.” In this regard, the bureau had advanced that it would investigate and take legal action against any cryptocurrency companies in the area.
Mining crackdown in China continues
The news about the supply cut off
.The hydroelectric dam to miners in Yunnan comes amid a series of crackdowns on China’s cryptocurrency industry. Mainly against miners, who have been forced to shut down and move their cryptocurrency mining operations to foreign countries.
Back in June we already reported that the Yunnan government was shutting down all cryptocurrency mining farms located in that province. At the time, the measures joined that of authorities in Xinjiang, Qinghai, and Inner Mongolia, who also ordered a complete shutdown of mining operations in those locations.
We also reported that authorities in China’s Anhui province were forced to “clean up” and rectify the power consumption of cryptocurrency mining companies. Also, some hydroelectric power plants in the country that supplied power to miners had been put up for sale in the face of the crackdown.
As a result, China’s contribution to the global rate of hash ofBitcoin dropped to 46.04%, after peaking at 75.53% during 2019. Displaced Chinese miners have now begun to seek refuge in friendlier jurisdictions, such as the United States, Kazakhstan, and Russia.
Version by Hannah Estefania Perez / DiarioBitcoin
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