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China’s Qinghai Province has issued a new ban on cryptocurrency mining operations, the government said on Wednesday.The local government raised concerns about the energy consumption associated with crypto mining
China’s Qinghai Province has issued a new ban on cryptocurrency mining operations, according to a government document released on Wednesday.
The Qinghai government will ban local authorities from setting up or authorizing new crypto mining projects. It will also shut down all current crypto mining operations in the province, according to the document from the Qinghai Industry and Information Technology Department.
The local government has raised concerns about the energy consumption associated with mining crypto. Bitcoin mining in China uses a combination of coal and hydroelectric power. The use of coal in particular does not align with China’s larger goal of moving towards a more carbon neutral nation.
“China’s move is not surprising given its history of repudiation of crypto,” said Haohan Xu, CEO of Apifiny. “The news also reflects the recent expansion of mining to other countries like the United States, Russia, Kazakhstan and Malaysia – and the increased throughput of existing miners outside of China. Some trading platforms are even starting to mine Bitcoin to help increase the liquidity of their traders and exchange partners. ”
One of China’s main governing bodies, the State Council of China, warned crypto miners in May when it ordered local governments to restrict crypto-related activities, including mining and trade.
China recently took steps to protect businesses from inflation. Because the country is by far the largest manufacturer and exporter in the world, the price increases in China are being felt globally.
Authorities have vowed to crack down on hoarding and rising prices and urged coal and steel producers to keep prices where they are.
A similar ban on mining is in place in Iran where President Hassan Rouhani has said cryptocurrency mining is strictly prohibited until the end of the summer, and the communications and ministries of Information Technology and Energy are responsible for cutting power to these centers. The ban will last until September due to the warmer months.
Casey wagner
Blockworks
Journalist
Casey Wagner covers digital assets and macroeconomics. Prior to joining Blockworks, she was a market reporter at Bloomberg.
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