Sunday, February 5, 2023

China’s Qinghai Province Announces Ban On Mining Activity

A new Bitcoin and crypto mining ban has been announced in the Qinghai Province of China, on June 09. 

On Wednesday morning, the Qinghai Industry and Information Technology Department released a document notifying the miners in the region to shut their businesses. 

“All cryptocurrency mining businesses will be required to shut down, and no more miners will be approved to operate in the province,” reads the released circular.

The authorities have also announced to inspect certain businesses randomly to ensure that they comply with new Qinghai new guidelines.

The latest stance is considered a part of the central government’s move to decrease carbon emissions in the country.  

In order to mine crypto, the miners require a huge amount of energy, which miners could find in most part of China, as it grid remains heavily reliant on coal.

Qinghai is the third province in China to ban crypto mining activity. Before it, Xinjiang and Inner Mongolia released a similar circular. 

In May, the crypto market suffered a huge loss after the State Council of China called for a crackdown on crypto mining activity in the country. The State Council order came just after the CEO of Tesla, Elon Musk, announced to not accept Bitcoin Payment for the company’s electric car. These two situations in a row were the main reason Bitcoin experienced a loss in the market.

Data released by Cambridge University’s Center for Alternative Finance shows that China has been the center of computing power used for mining crypto. However after the government started taking strict action against it, many miners relocated their businesses to other countries like Kazakhstan.

As per the report, in today’s time, the mining businesses have started growing in the US, but they also face some pushbacks from environmentalists and state politicians.

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