The Sichuan province of China which is among the top-3 Bitcoin mining hub had a regulatory meeting over the future of Bitcoin and crypto mining in the region. The regulatory meeting happened on June 2, post the government’s call for a heavy crackdown on Bitcoin mining in the country. Two sources familiar with the matter told the media that local miners are likely to continue their operations this season, but remained uncertain over the future of Bitcoin mining in the province.
Sichuan -where most of bitcoin mining farms located hosted a symposium about bitcoin mining,, a friend who went to the meeting says all’s good , local authorities still shows positive attitude towards to bitcoin mining.
— Molly (@bigmagicdao) June 2, 2021
While there is no immediate threat to crypto mining in the Sichuan region, regulators also made it clear that miners should start looking for alternatives and shouldn’t add any further mining rigs to their operations.
The Chinese crackdown on Bitcoin mining threatened to disrupt a well-settled mining industry in China. The Inner Mongolian became the first province to issue clampdown guidelines that prohibits any kind of crypto mining at an industrial level or even home-based. Inner Mongolia is one of the three most prominent Bitcoin mining hubs in China because of the availability of a cheap electricity supply.
Is Chinese Bitcoin Mining Crackdown a Serious Concern or Another FUD?
China has issued a warning against Bitcoin mining on numerous occasions before the current crackdown, but insiders have revealed that the central government is pretty serious this time around owing to their carbon neutrality pledge. Thus, the current crackdown cannot be dismissed as another FUD, but in no way it impacts the Bitcoin network in a bad way. Many believe a crackdown would lead miners to move away from China and settle in different countries which in turn would make Bitcoin hashrate input more decentralized.
The Chinese crackdown on crypto mining to meet carbon neutrality goals has also forced miners in the country to look for cleaner alternatives to coal-based energy supply, thus in the long term, the current crackdown can prove to be a boon.