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