Chinese Region Sichuan To Ban Cryptocurrency Mining Or Not Exactly?

New information suggests that local government authorities in the Chinese province Sichuan are seeking to ban cryptocurrency mining operations in the region.

Contrary, sources familiar with the matter claim that these notices are misunderstood, and crypto mining will not suffer major negative consequences.

A Region In China Clamps Down On Crypto Mining?

The story began with the local media outlet PANews posting on Twitter the notice, which reads:

“The Financial Administrative of the Sichuan providence of China has issued a notice to its subordinate offices ordering them to “guide [cryptocurrency] mining entities to end their mining activities in an orderly manner.”

The report added that Sichuan is one of the most popular regions in the nation for mining activities, with nearly 10% of the local mining power. A statistic backed by the mining tracking tool recently launched by a designated team from Cambridge University.

 Cambridge UniversityBitcoin Mining Chinese Regions. Source: Cambridge University

Despite the adverse implications of this claim, numerous people have opposed the precise meaning. According to Matthew Graham, CEO of Sino Global Capital – a China-based fund operating with blockchain investments – this particular notice is an exaggeration.

“China is not banning mining; it’s complicated as usual, messages frequently conflict especially at a local or regional level. Actual message is basically “don’t use local government support for mining to illegally raise money.” Thank you.” – he Tweeted.

The head of marketing for a local blockchain startup also believes that the report is a misunderstanding, and the country will not, in fact, ban cryptocurrency mining.

China To Lower Electricity Costs For Miners Instead?

While the information from above appears to be conflicting at best, a previous local report was considerably more optimistic. As CryptoPotato reported recently, the same region Sichuan was contemplating a new reform regarding crypto mining.

It represented a joint venture called the “Implementation Opinions on the Construction of Hydropower Consumption Demonstration Zones to Support the Development of the Blockchain Industry.”

The idea behind it was to utilize the vast water resources in this region and by employing the advantages of hydropower, to “seize major strategic opportunities” for blockchain development.

The announcement at the time said that all companies considering taking advantage of this initiative had to match the complete procedures for construction projects. Thus, the new reports from today could be linked with the application procedure, instead of a direct ban on cryptocurrency mining in the region.

Enjoy reading? Please share:



The post Chinese Region Sichuan To Ban Cryptocurrency Mining Or Not Exactly? appeared first on CryptoPotato.

Publication date: 
05/23/2020 - 12:16
Disclaimer

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.