China’s Cryptocurrency Breakdown Now in Sichuan

China’s Cryptocurrency Breakdown Now in Sichuan

The whole month has been full of tide waves smashing the cryptocurrency  industry of China entirely to the shore rocks. The nationwide ban of certain cryptocurrencies, regulations imposed upon crypto trading and crypto exchanges have traumatized the chinese cryptocurrency industry explicitly. Furthermore, the waves now spread to Sichuan too. 

Breakdown in Sichuan

Sichuan, being a south-western province of China, now suffers the same fate as Xinjiang, Beijing, Mongolia, and Yunnan. The month-long regulations and restrictions imposed on the whole country nationwide took serious action for Sichuan. It officially authorized no hold on cryptocurrency mining in Sichuan. Extreme regulations have now made cryptocurrency mining tremendously difficult in China. On the contrary, China’s Bitcoin (BTC) mining correlates to nearly 50% of the overall Bitcoin (BTC) mining all over the world. Also, cryptocurrency mining is one of the biggest industries in China.

China’s overall cryptocurrency regulations are solely intended to control various risk factors accounting for the finance of the nation. However, the Sichuan Provincial Development and Reform Commission together with Sichuan Energy Bureau has come up with the suspension of cryptocurrency mining in Sichuan province. The Sichuan Energy Bureau declared an inspection for all cryptocurrency mining firms in Sichuan citing the energy consumption on Friday. Also, they denoted shutting down of those crypto mining firms which are complete energy suckers based on the inspection.

On Sunday, it’s officially declared by both the Sichuan Provincial Development and Reform Commission together with Sichuan Energy Bureau upon immediate closure of 26 crypto mining firms. This major shutdown of 26 crypto mining firms has left the entire Sichuan mining industry speechless and terrified.

Sichuan & Its Mining History

Sichuan is the second largest crypto mining place in China. It’s an ideal place for mining due to its vast hydroelectricity generation. The four rivers are responsible for immense hydroelectricity generation throughout. In addition, being a cleaner source of electricity, cryptocurrency mining firms choose Sichuan compared to others for setting up their mine. Furthermore, new projects and firms have also been canceled immediately. 

Previously, certain provinces like Beijing have banned the mining of cryptocurrency for which the electricity has been sourced from the burning of coal- the traditional method. But, in the case of Sichuan, the electricity used for mining is completely green as it is sourced by hydropower plants. These hydroelectricity generators are on all 4 rivers flowing and merging through Sichuan. 

On the other hand, the Sichuan government states excessive pollution prevails on the rivers and accounts for massive energy consumption. 

With situations getting worse every day, nearly most of the crypto-mining firms are in the process of relocating their mines.

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A Project Engineer by profession, a writer by passion. Especially into the critics and skeptics on cryptocurrency. His fascination towards the crypto world and his personal experience on it has made him a writer with a taste.