SICHUAN MINERS ARE BANNED FROM MINING CRYPTOCURRENCY

Mining companies were actively working in the Chinese province of Sichuan - it was possible thanks to cheap electricity and the absence of restrictions from the authorities. However, now it has been decided to stop their activities.

Sichuan was one of the key centers for cryptocurrency mining - 26 companies officially operated in the region. But now the local energy bureau, along with the authorities, has approved measures to restrict the work of miners.

Large mining companies will have their electricity cut off on June 20.

The companies worked in special zones , where the consumption of hydropower is developed - this solved the problem of excess energy during the rainy seasons. Small crypto-mining organizations will also lose electricity - the authorities plan to track supplies and suspend them.

Mining of digital currency has already been banned in three Chinese provinces: Xinjiang, Qinghai and Yunnan. The measures were taken after the May speech of the Vice Premier of the State Council of the People's Republic of China Liu He, who said that the processes of mining and trading of cryptocurrency should be tightened. The authorities explained their position by the fact that because of the digital currency, there is a risk of a collapse of yuan. Now the big miners are leaving China.