mido-finance.com

Local sources report that authorities from the city of Baoshan in the Yunnan province of China are trying to shut down power to Bitcoin miners, ordering electricity producers to cease supplying power to the miners.

On Nov. 30, Chinese crypto reporter Colin Wu tweeted that many Bitcoin miners had told him that China is trying to shut down power to mining facilities, sharing what seem to be scanned copies of official documents issued to power producers:

However, Wu said that the ban was probably informed by localized “economic interests,” and probably is not indicative of an effort to quash crypto mining on the part of Beijing:

“There is no need to overestimate the impact of this incident. The attitude of China local power companies towards crypto mining is often changing. It is more a demand for economic interests than political pressure.”

The ban looks to have coincided with a 24-hour fall in global hash rate of roughly 10% from 140 exahashes per second to 125 EX/s, though correlation is far from causation.

According to Cambridge University’s Bitcoin Electricity Consumption Index, or BECI, Yunnan was fourth-largest region by mining hash rate in China, behind Xinjian, Sichuan, and Inner Mongolia as of April 2020. Yunnan then represented 5.42% of global hash rate — ranking it above all countries except for China, US, Russia, and Kazakhstan.

In June, Wu reported that Yunnan’s government had ordered 64 unauthorized mining operations to shut down, including seven which were still under construction. The government cited tax evasion and security risks like how the mines were wired to local hydropower stations.

During that same month, a local Bitcoin mine caught on fire, led to the incineration of thousands of units.

The mid-year crackdown also followed an explosion at a hydropower station in Yunnan that killed six people and injured five in May.

The blast is perceived as the reason behind stringent enforcement of security criteria regarding hydropower plants in that zone.

Back in April, Yunnan’s state grid also disbursed a document cautioning electricity producers against the illegal routing of power to BTC mining centers.