By
Tolu Ajiboye
April 23rd, 2024
There were at least two mining sites in the southwestern region of the country that had received orders to cut their power sources.
Some reports have alleged that crypto mining operations might be seized for a day or more in China’s Yunnan province, ahead of the upcoming 100th-anniversary celebration of the Communist Party later this week.
According to a report, the reason for the shutdown remains unclear. It might be due to orders from above or the China regulatory announcement of a crackdown on crypto miners.
Crypto Mining Activities in Yunnan
The vice president of mining infrastructure company Foundry Services, Kevin Zhang, who was being definite about the cause of the crypto mining shutdown, says, “all major Bitcoin (BTC) mining farms in Yunnan have been shut down as of today.”
According to Zheng there were at least two mining sites in the southwestern region of the country that had received orders to cut their power sources.
While the reason for their closure remains unclear, a report by Cointelegraph has, however, tied this to the significance of July 1 for the Asian country. Per the report, “the shutdowns are purportedly due to the impending Chinese Communist Party, or CCP, celebrations, which occur every year on July 1. Due to this year’s anniversary being a centennial, authorities seem to have taken stronger measures to ensure less pollution – China ranks as the 14th worst country in terms of air quality – traffic, and political demonstrations. Major industries, including coal mining and steel production, will reportedly be shut down for up to a week to reduce urban smog and prevent accidents.”
It would be recalled that the State Council Finacial Stability and Development Committee that regulates BTC mining has maintained a level of crackdown against the industry in recent while. Thus, it is unclear if this current closure is due to the CCP celebrations or if it is tied to hostilities towards the space.
China’s Crackdown on Bitcoin Mining
We have previously reported on how China’s crackdown on Bitcoin is leading to an exodus of mining firms in the country leaving for new pastures. According to one of our reports, “the crackdown on mining operations in China will lead to a migration of mining activities to the West and to places with lesser regulatory restrictions like Kazakhstan, Mongolia, and Afghanistan.”
Already the effect of this is being felt in the space as “the rate at which Bitcoin is mined, dropped on July 29 to 94EH/s,” which is a level that was previously seen in 2020. Not only that, the level of “mining difficulty may shed 25% when the next reset is on July 3.”