It has been ordered by the authorities of the Yunnan province of China to investigate the accused unauthorized utilization of electricity by the companies and the individual miners of Bitcoin (BTC) to delve deep into the matter. In this decision of clamping down on the Bitcoin mining industry in China, Yunnan, despite being the fourth-biggest province regarding the mining of cryptocurrency, has accompanied the rest of the provinces of the country, which have already initiated the strike against crypto mining.
According to the South China Morning Post (SCMP), the orders for ceasing the operations of Bitcoin mining that are threatening or abusing the electricity have been issued by the authorities of the respective province. The intentions of the Energy Bureau of China have been mentioned in its declaration, which demands the curbing of every illegal user’s electricity supply for the mining of cryptocurrency.
The proceedings of Chinese authorities confronting crypto mining are not without cause. A sudden boost up in the requirement of coal and consumption of electricity by the crypto underpinning server farms, including bitcoin, as Bloomberg states, has been mentioned by the Chinese authorities in this respect.
The regular economic order is being disrupted by the cryptocurrencies
The Index data given by Cambridge for the Bitcoin Electricity Consumption show that 65% of the Bitcoin hash rate all over the world is credited to China. As a result, the authorities are launching crackdowns to block the trading and mining of cryptocurrency.
The three industry personages, namely the Payment and Clearing Association of China, the China Banking Association, and the National Internet Finance Association of China, have elaborated the reason for the crackdown against the trading market of digital assets in a joint statement. They disclosed in the statement that the prices of the cryptocurrency have escalated to the sky, and the anticipated trade of cryptocurrency has backfired, causing severe disturbance to the security of the property of the people. Thus the regular financial and economic order has been disrupted.
A shutdown for the mining operations of Bitcoin has been ordered in the Bitcoin-mining zones
The mining hubs other than the previously mentioned region, including Qinghai, Xinjiang, and Mongolia, have also issued the regulations for the shutting down of the crypto mines in the respective zones.