China threatens to dismantle Bitcoin miners, power plants with force
Bitcoin mining operations in Yingjiang, China are to be “forcibly dismantled” if discovered by authorities, reported local media IT House last week.
Not only that, the State Energy Bureau is ordered to tear down hydropower stations supplying electricity to illicit Bitcoin mining plants that ignore the government directive.
Bitcoin miners in the Yunnan province — where Yingjiang is situated — were first put on notice in June.
The mountainous region in southwest China once offered crypto miners access to cheap hydroelectric power, which made the energy-intensive process more economical.
Now, the People’s Government Office of Yingjiang County has ordered:
- Hydropower stations in the region to cut off Yingjiang Bitcoin mining ops.
- Yingjiang Bitcoin miners must dismantle rigs and move equipment out of the area.
- Mining plants must report their shutdown to the County Development and Reform Bureau.
Yingjiang Bitcoin miners join colleagues in three other Chinese regions, who just last month had their own power supplies stifled as a result of orders from local governments.
Sichuan county, historically one of China’s larger crypto hubs, booted Bitcoin miners in June.
China sent Bitcoin hash rate spiralling
As Protos previously reported, China’s government in May placed an embargo on working with crypto for banks and payment providers.
The announcement sent crypto tumbling — $1 trillion was wiped from the global market cap in the fallout.
Bejing framed its battle with Bitcoin as a way to protect citizens from the dangers of crypto investing, as well as a way to help the country reach carbon reduction targets.
Read more: [Coal and taxes: Bitcoin miners have a new home in Kazakhstan]
It was a shockwave that caused a mass exodus of Bitcoin miners from China’s main crypto mining hotspots.
Bitcoin’s hash rate more than halved as miners relocated overseas — mostly to Kazakhstan and the US — while mining rigs were sold “like scrap” in mainland China.