China’s Xinjiang to Shut Down Illegal Bitcoin Mining Farms By September
China’s Xinjiang Uygur Autonomous Region is demanding to eliminate illegal bitcoin mining facilities by the end of this August, according to the government notice issued by the region’s Economic and Information Commission (EIC).
As per the official notice, local utility companies providing electricity power are demanded to complete the phase-out work of illegal bitcoin mining operations by August 30, 2018, and they will be held accountable if they failed to shut down ‘illegal’ bitcoin mining operations. Illegal bitcoin mining companies refer to
- Operation that has not gone through business registration with local authorities as a licensed business entity
- Operation that has not signed formal contract with local power supply companies.
Nevertheless, this is not the first time for such news about government’s crackdown on bitcoin mining to raise concerns among the crypto community. Early in this January, Beijing regulators have issued documents telling local governments to rationally guide enterprises to orderly retreat from the bitcoin mining business and regularly report work progress.
In fact, few practical measures have been taken by local governments after that, which came as a temporary relief to bitcoin mining farms located in remote places with cheap electricity supply. However, the notice from Xinjiang, one of the three large bitcoin mining bases (Sichuan, Xinjiang, Inner Mongolia) in the country, has broken the peace.
In this context, most large-scaled bitcoin mining farms in the country have early sought solutions by moving abroad.
Currently, Bitmain, which owns the largest bitcoin mining pool, has already set its mining business in U.S., Singapore and Canada; world’s third largest mining pool BTC.Top has also had its mining operation run in Canada, and world’s fourth largest mining pool ViaBTC has built farms in Iceland and U.S.
Prior to that, some people had proposed another solution to the power-hungry bitcoin mining problem – using clean energy, such as overabundant hydropower/ wind power/ solar energy in certain regions as electricity supply for mining farms. While it failed to gain technical support for the regulator’s unclear policies and unamicable attitude towards crypto sector back then.