China to shut down over 90% of its Bitcoin mining capacity after local bans
GT staff reporters, 20 June 2021
Many Bitcoin mines in Southwest China’s Sichuan Province – one of China’s largest cryptocurrency mining bases – were closed as of Sunday, according to after local authorities ordered a halt to mining in the region on Friday amid an intensified nationwide crackdown against cryptocurrency mining.
The ban also means that more than 90 percent of China’s Bitcoin mining capacity is estimated to be shut down, at least for the short term, as regulators in other key mining hubs in China’s north and southwest regions have taken similar harsh steps.
Some industry players had hoped that regulators in Sichuan, where hydropower is abundant, could take a softer approach. But the latest ban underscores Chinese regulators’ determination to curb speculative crypto trading to control financial risks, despite certain benefits to local economies, observers said.
“The exit window is closing, and we’re scrambling to find overseas mines to place our mining devices,” a Sichuan-based industry insider, who spoke on condition of anonymity, told the Global Times on Sunday, adding that a number of miners have suffered huge losses.
