China Crypto Mining Crackdown Continues to Eastern Province

Share Article
In Brief
  • Anhui, a province in eastern China, has become the latest in the country to crack down on cryptocurrency mining.

  • This is part of a cleanup aimed at reducing power consumption, as the province faces a "grave" supply shortage of electricity.

  • Although never a big crypto mining province, the latest news only emphasizes China’s ongoing squeeze on miners.

  • promo

    BIT Launchpad: Up To 3,500 FREE BIT. Don’t Miss The Beat. Join Now!

The Trust Project is an international consortium of news organizations building standards of transparency.

Anhui, a province in eastern China, has become the latest in the country to crack down on cryptocurrency mining.

Sponsored



Sponsored

According to a news portal operated by state-owned Hefei Media Group, Anhui will shut down all crypto mining projects. This is part of a cleanup aimed at reducing power consumption, as the province faces a “grave” supply shortage of electricity.

Experts anticipate that Anhui’s electricity demand will rise to 73.14 million kilowatts in 2024. However, the current supply of the province is only 48.4 million kilowatts. According to the article, a “relatively big gap” is projected. 

Sponsored



Sponsored

In order to account for this, the province is doing more than just rooting out cryptocurrency mining. Anhui will also promote reforms in electricity pricing to facilitate a more economic use of power. Although Anhui has never been a big cryptomining province, the latest news only emphasizes the ongoing squeeze on Chinese miners.

China’s crypto crackdown

China is among the most advanced in the world in terms of the development of its central bank digital currency (CBDC). It also hopes to be the most advanced country in the world for blockchain technology by 2025. But despite how enthusiastic the state may be over some aspects of blockchain technology, it’s clearly something that it wants to control.

To this end, Chinese authorities banned banking and payment institutions from providing services for crypto-related businesses last month. They said that cryptocurrencies disrupt the normal economic and financial order, while “seriously infringing on the safety of people’s property.”

Shortly thereafter, authorities turned their attention to cryptocurrency mining. Their given reason was to protect the country’s financial system while reducing carbon emissions. Authorities in different Chinese provinces have already started carrying out these orders. These include states like Yunnan and Sichuan.

Once nearly accounting for 70% of global mining of bitcoin, China’s ban has inevitably led to a mass exodus. Many of these companies have naturally had to flee abroad — many have managed to find their way to Texas.

Disclaimer

All the information contained on our website is published in good faith and for general information purposes only. Any action the reader takes upon the information found on our website is strictly at their own risk.
Sponsored
Share Article

Nick is a data scientist who teaches economics and communication in Budapest, Hungary, where he received a BA in Political Science and Economics and an MSc in Business Analytics from CEU. He has been writing about cryptocurrency and blockchain technology since 2018, and is intrigued by its potential economic and political usage. He can best be described as an optimistic center-left skeptic.

Follow Author

Market signals, studies and analysis! Join our Telegram Today!

Go

Bit2Me ICO JUST STARTED! Buy B2M token now.

Buy now!

BIT Launchpad: Up To 3,500 FREE BIT. Don't Miss The Beat.

Join Now!