TL;DR Breakdown
• Officials in Yingjiang demand greater control of hydroelectric plants.
• The Chinese government asks to dismantle the crypto mining farms before August 24.
The government officials in Yingjiang, a province in Yunnan – China, issued a strict order to prevent crypto mining in the region. In this decree, the people’s office prohibits hydroelectric plants from providing energy to crypto mining companies.
With this warning, the China Government may begin with a new regulatory plan for cryptocurrencies. All crypto farms operating in the municipality must cease operations before August 24.
If the crypto mining farms do not close before the anticipated date, the government may dismantle them and report their illegal operations. The announcement also requires hydroelectric plants to be more aware of energy consumption in these cryptocurrency farms.
New persecutions towards crypto mining farms in China
These crackdowns on crypto farms are the latest developments that the Chinese government has exposed. After the authorities banned cryptocurrency trading in the country, his next focus was on crypto mining farms.
Since China fights against crypto mining, provinces such as Sichuan, Anhui, and the independent zone of Inner Mongolia have asked for energy consumption verification. This ensures that no farms dedicated to crypto mining work within its jurisdiction.
The electricity agency in Yunnan has stated that it will investigate and penalize all illegal operations of mining companies. Some of these illegitimate operations are using electricity illegally, engaging unapproved energy, or evading payment for electricity.
China wrapped in crypto regulations
Even though China has acted on crypto mining, it seeks to become a Blockchain network powerhouse. The national government expects to develop a solid Blockchain by 2025 and implement it in key companies.
Recent collaborations with Alibaba, the largest E-Commerce store in Asia, show that the Chinese government wants to adopt the Blockchain network on its terms. After cryptocurrency companies were banned from operating within the country, the Chinese government is backing down. Now authorities in Beijing are backing Alipay, an Alibaba branch, which offers various NFT collections for online auctions.
Shortly, the government authorities may approve the cryptocurrencies trading but under their ideals. In these new reforms on cryptocurrencies, the CryptoYen, a stablecoin from China, maybe key for crypto companies to function normally. However, they are only speculations about the Chinese government’s next mining and virtual trading currencies.
