Report: China's Xinjiang Region to Suspend Bitcoin Mining

Chinese crackdown on bitcoin mining has reached Xinjiang province, after Inner Mongolia and Sichuan. According to documents being circulated on Weibo, the Development and Reform Commission of the province has asked for the suspension of virtual currency mining in the region.

The Google translation of the document read,

State leaders have issued instructions to comprehensively clean up and combat virtual currency “mining” behaviors. Projects shall be ordered to stop construction or production by the energy-saving review agency. Responsibilities of the person in charge, please immediately order your company to suspend production for rectification before 14:00 on June 9, 2021, and report the suspension of production and rectification to Changji Prefecture Development.

Xinjiang is one of the prominent Bitcoin mining regions in China and a blackout due to flooding in the region has led to a sharp decline in the Bitcoin network’s hash rate last month. The local reports did not clear whether the suspension would be temporary or permanent as miners in the region indicated they would continue their operation until further updates arrive.

But some miners in Xinjiang has told us that they continue their operation as usual. We'll keep an eye on the latest update. #Bitcoin #bitcoinmining

— 8BTCnews (@btcinchina) June 9, 2021

Xinjiang Bitcoin Mining Crackdown Another FUD or Drastic Step by the Local Gov?

China’s crypto crackdown is nothing new but many insiders claimed that the government was taking drastic measures this time around. Among several provinces popular for being a Bitcoin mining hub, Inner Mongolia became the first and only province to outright ban Bitcoin mining of any scale in the region. This was expected since the province has failed to meet carbon emission goals set by Beijing.

Sichuan’s local government decided against any immediate drastic measures and allowed miners in the province to continue this season. At the same time, it also warned miners to start looking for alternatives. The recent crackdowns were also attributed to Beijing’s aggressive carbon neutrality goals that have led to the banning of many fossil fuel-powered mining operations.

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Prashant Jha

An engineering graduate, Prashant focuses on UK and Indian markets. As a crypto-journalist, his interests lie in blockchain technology adoption across emerging economies.

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