The mining projects in Sichuan province have finally felt the hammer being dropped on their heads. The government of China has recently changed its friendly stance towards cryptocurrencies. The Chinese officials have already introduced a ban in other major regions of the country where mining rigs were increasing at a breakneck pace. The government of China has also blocked crypto exchange services like Huobi and OKex from the localized search engines and social media forums.
The axe of regulations has finally dropped on the necks of crypto miners in Sichuan. The move is not a huge surprise and was highly likely to happen under the current circumstances. The miners in the province are directed to stop operating with immediate effect. However, the mining ban is thought to be temporary.
Chinese Government has Directed all Power Generation Companies in the Region to Stop Supporting Crypto Miners
Wu blockchain, a Twitter account that shares insightful news from China about the latest crypto development, has recently reported the ominous news. According to a new decree issued by the federal regulatory authorities in the region, the Power Supply companies need to stop transferring energy to the crypto mining firms without any further delays.
These power generators must also compile and submit a detailed report on their partnership with mining operations by 25 June. As part of the government’s plans, 26 biggest and most prominent crypto mining rigs have been listed. These mining hubs would be monitored strictly and must remain closed for the said period. Meanwhile, other mining operations can remain live during this time.
Ethereum Hash Rate Falls soon after the New Sichuan Ban Hit the Media
When the Chinese government first started a crackdown on the crypto mining operations, Bitcoin hash rates were affected significantly. The first provinces to be affected by the mining ban are Xinjiang, Qinghai, Inner Mongolia, and Yunnan. While many mining firms under investigation in these places, they are directed to remain out of commission. According to Chinese officials, a lot of mining firms have been charged with using illegal methods of acquiring power supply.
In the middle of the Sichuan province blockade, it has been noticed that Ethereum hash rates have gone down by as much as 7%. On the other hand, no visible changes are detected for Bitcoin hashes. The main reason could be that after a five months crash, a lot of Chinese crypto miners are moving to other regions.