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Chinese Bitcoin miners in Yunnan has been banned for power supply

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TL;DR

TL:DR Breakdown: 

  • Bitcoin miners in Baoshan, Yunnan, have been banned from receiving power supply from energy companies.
  • The source says it is more demand for economic interest by the authorities.

A recent report from the popular Chinese crypto reporter, Wu Blockchain, informed that the authorities in the Yunnan province of China had been ordered power companies to stop providing electricity to the Bitcoin miners in that region. The authorities didn’t state any reason for the sudden ban. However, the reporter noted that it might have stemmed from more demand for economic interest.

Yunnan Bitcoin miners halted amid power ban

According to the source, the power ban was served to several Bitcoin miners in the Baoshan region in Yunnan, precisely on November 30. The development today can impact the Bitcoin network hashrate, given a large number of crypto mining farms located in that region. Notably, Yunnan is the fourth-largest province by Bitcoin mining hashrate, just after Xinjiang, Sichuan, and Nei Mongol, per the Cambridge BTC mining map.

Already, a drop was noticed in the Bitcoin network hashrate yesterday. From as high as 139 EH/s, the hashrate dropped to 111 EH/s, according to the information on Coinwarz. There are possibilities that the development in Yunnan fueled the decline. However, the source opined that the power ban isn’t a political pressure on the Bitcoin miners. It is likely a way for the authorities to demand more economic interest.

Yunnan cracks down on miners

Sometime in June, the Yunnan authorities had asked many Bitcoin miners in the region to stop operations. The authorities said most miners were imposing security risks, as they reportedly connected their farms to local hydropower stations. The miners were also accused of tax evasion, which led to the closure of 64 unauthorized mining operations, including new mining facilities.

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Ibiam Wayas

Ibiam is an optimistic crypto journalist. Five years from now, he sees himself establishing a unique crypto media outlet that will breach the gap between the crypto world and the general public. He loves to associate with like-minded individuals and collaborate with them on similar projects. He spends much of his time honing his writing and critical thinking skills.

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