Latest news about Bitcoin and all cryptocurrencies. Your daily crypto news habit.
It's unclear if the shutdowns are due to orders passed down from above or the result of China's announced regulatory crackdown on crypto miners.
Reports alleged that cryptocurrency miners in China’s Yunnan province may be out of commission for a day if not longer due to the Chinese Communist Party’s 100th anniversary celebration this week.
According to Kevin Zhang, the vice president of mining infrastructure company Foundry Services, all major Bitcoin (BTC) mining farms in Yunnan have been shut down as of today. Zhang said he personally knew of at least two crypto mining sites in the southwestern region that had received orders to cut power.
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 in an attempt to reduce urban smog and prevent accidents.
However, it’s unclear if the CCP anniversary is directly related to the shutdowns or Chinese crypto miners are responding to an ongoing regulatory crackdown. The State Council’s Financial Stability and Development Committee announced in May it would be curtailing BTC mining amid financial risk concerns. Several reports have surfaced since that time suggesting authorities are enforcing crypto mining bans in regions including Yunnan, Xinjiang, Inner Mongolia and Qinghai.
Related: China crackdown shows industrial Bitcoin mining a problem for decentralization
While some companies have said the mining ban is driving them to other provinces within China, a few may leave the country entirely. Many experts in the crypto space expect the regulatory crackdown will push mining firms to relocate to Texas, with abundant renewable energy and a highly deregulated power grid.
The views and opinions expressed in this article are solely those of the authors and do not reflect the views of Bitcoin Insider. Every investment and trading move involves risk - this is especially true for cryptocurrencies given their volatility. We strongly advise our readers to conduct their own research when making a decision.