Bitcoin Mining Shut Down By Order of Provincial Authority of Qinghai, China

Bitcoin Cryptocurrency Cryptocurrency Regulation News

Xinjiang area in China had recently shut down Bitcoin mining industry and operations carried out in the region. Now a provincial authority in the Province of Qinghai, China, too has asked Bitcoin miners to immediately cease and desist from any mining activities immediately. Failing shall entail legal consequences along with the imposition of hefty fines.

Chinese Government is vigorously pursuing crackdown operations against crypto miners, particularly Bitcoin miners, in the country. In the pursuit of its initiative, a nationwide closure of Bitcoin mining centers is taking place in China. The first crackdown was started from the country’s capital, Beijing. Now the cracking down operation is spreading like a wildfire across other Chinese provinces. Mostly, the provinces are adopting the policy, which originated from the region of Beijing.

Lastly, it was the Xinjian area, which duly adopted the Beijing crackdown policy on 9th June and implemented it in letter and spirit. However, action was taken against specific miners of Bitcoin who were then directed by the Provincial Authority to close mining operations. Thereafter, on the same day, the Industry & Information Technology Department of Qinghai issued a notice to Bitcoin miners. The miners were asked to immediately cease and desist from taking part in any Bitcoin or other crypto mining activities.

It was further pointed out in the notice that every Bitcoin mining facility will be duly inspected and evaluated. The authority specifically informed the miners that until further instruction they won’t be allowed to engage in any mining activities. Either Bitcoin mining or the mining of any other digital asset will not be allowed, clarified Qinghai regulatory authority.

It is clear that the crackdown which originated from Beijing is continued to be implemented in other parts of China.

It was in the month of March 2021, when the Chinese Government talked about its plan to deal with the crypto mining industry. However, no action was taken thereafter until the end of April 2021. But at the commencing of May, the regulatory authority in Sichuan i.e. Sichuan Energy Regulatory Office said that it will hold a meeting in June. In this meeting, the regulator told that the issue of Bitcoin mining will be discussed and a strategy will be laid down. However, it was noted by the authority that there are serious implications and concerns over the mining of Bitcoin and other cryptocurrencies.

Thereafter, the first action was taken two weeks ago and it was initiated in Beijing by the country’s top regulatory authority. The said action was taken against Bitcoin mining centers that were operating in the region of Inner Mongolia.

Meanwhile, a reporter of Qinghai namely Colin Wu, stated that China has three major regions where the majority of Bitcoin mining takes place. He noted that while crypto mining has been suspended completely in Inner Mongolia, however, there is resistance in Xinjiang and Sichuan.

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