Lights out for crypto mining in China?
The Chinese government has now begun to target cryptocurrency miners by threatening to cut companies’ power if they do not register with the Power Supply Bureau.
After restricting the use of cryptocurrency-related message boards, and attempting to get rid of bitcoin use in the country, the Chinese government now has its sights set on bitcoin mining.
The Yingjiang Administration Bureau for Industry and Commerce issued notices to various mining companies telling them that if they do not register with the Power Supply Bureau, they may be faced with power cuts.
China is said to account for the largest number of computing power dedicated strictly to crypto mining operations. The problem with many of these mining companies is that they are operating in gray zones of the law, while most are too small to even warrant having a name. Although many of these companies market various crypto mining hardware, they also operate large mining pools aimed at discovering the next bitcoin block.
With these new restrictions comes a world of worry for those mining in China. Although China has some of the cheapest electricity rates, all of it will be meaningless without electricity to power computers rigged for mining.