• Bitcoin mining is expected to be banned in China’s Yunnan Province

  • Authorities in Yunnan, China’s Yunnan province, have purportedly banned Bitcoin mining, joining three other regions in doing so.

    The Chinese province of Yunnan will soon ban Bitcoin mining, according to a message from BTC.top, a prominent cryptocurrency mining corporation with operations throughout China and North America.

    In a WeChat group, some renowned Chinese miners likewise stated that they had “lost the Yunnan battleground.”

    To keep large computer farms operating in order to mine cryptocurrencies like Bitcoin, a vast amount of energy is required. These machines are in charge of validating transactions and securing the network. They are compensated in the network’s native coin for their efforts. The cryptocurrency enters the market as a result of this operation.

    China’s restriction on Bitcoin mining China is home to a significant amount of cryptocurrency mining. However, due to the latest round of crackdowns, this is changing.

    A prefecture in Xinjiang, Inner Mongolia, and Qinghai has now been included to the Southwestern province. Bitcoin mining was included in a laundry list of “financial risks” that must be handled by China’s banking committee last month. It was the first time the country’s State Council, a high-ranking government cabinet, addressed Bitcoin mining directly.

    Inner Mongolian officials issued a new decree four days following the revelation, prohibiting any crypto mining. According to reports, violators of the new rules will be “blacklisted” from China’s social credit system, preventing them from taking out loans, traveling overseas, and other activities.

    Authorities in Qinghai province and a minor prefecture in Xinjiang also directed Bitcoin miners to stop working on June 9.

    Due to the low cost of energy—the majority of which is coal-based—all four regions are well-known hotspots for crypto mining facilities.

    China’s green objectives are said to be fueling the massive crackdown. President Xi Jinping of China said in September 2020 that the country would become carbon neutral “before 2060.”

    Despite the fact that it is not included in China’s 5-year economic plan, it appears that prohibiting Bitcoin mining is one of the steps the Government is taking to achieve this aim.

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