China orders Yunnan BTC miners to stop operating by the end of June and the ban in the country is spreading out further while the government doubles down on independent blockchains so let’s read more in our latest Bitcoin news today.
For the longest time, China cracked down on speculative crypto trading and left the mining sector alone however now, mining has been an established business in the country for both the governemnt and the miners. But the carbon neutrality goal for china along with the Dogecoin trading, have raised concerns with the governemnt at quite an inconvenient time, the CCP’s 100th birthday on July 1. Crypto became a sensitive topic during the run-up to the celebration and the internet money is completely out of the government control which is why they see it as dangerous.
Bitcoin’s entire network’s hashrate dropped by 20E. Due to the decrease, Bitcoin has not produced blocks for 1 hour and 45 minutes. pic.twitter.com/kWnUhn9lwB
— Wu Blockchain (@WuBlockchain) June 11, 2021
This week’s reports show that the events that happened in China over the past week from the mining crackdown to the propaganda surrounding the centralized and commercial Change a Chain. By now, it is clear that most mining activities that drain clean energy have been shuttered in China. It initially started in Inner Mongolia and then spread to Yunnan and Xinjiang. Someone in Guandong dropped a dime on Yunnan to the government apparently and claimed that it was not getting enough electricity from the province. The government later investigated and found that crypto mining activities were taking place.
There was some confusion about this a day ago but many news outlets denied it. Even the press in media was confused but today one spokesperson for the Yunnan Energy department confirmed that it wants all miners to leave by the end of June. The press release noted:
“By the end of June, all bitcoin mining operations must be scrutinized and cleaned up. Any operation that uses electricity without permission must be stopped.”
China orders Yunnan BTC miners to top mining and many of the miners quit which we can see from the drop in the hashrate on the BTC blockchain. Sichuan has been largely left alone and it’s the only province whose governemnt called in a meeting with the miners to discuss the situation before stopping all operations. So far, no immediate plan to ban mining has been announced and this is likely due to the excessive hydroelectric power produced in the summer as the local government collects a huge tax when the miners offload their power.
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