Chinese Authorities to Shut Down Illegal Miners

China's Xinjiang Uyghur autonomous region is set to eliminate "illegal" bitcoin mining by the end of September
24 July 2018   1195

The Chinese authorities intend to put an end to the "illegal" bitcoin mining in the Xinjiang Uygur Autonomous Region before the end of August. This is reported by CoinDesk.

The first rumors about the authorities' new plans appeared this weekend after a leak of the documents of the Economy and Information Commission of Xinjiang (EIC). In particular, it says that local suppliers of electric power industry are obliged to stop illegal bitcoin mining and to report it to the authorities.

Authorities note that "illegal mining" also means mining without license and use of electricity without official contacts.

Local utility agencies and companies will be held accountable if they failed to shut down 'illegal' bitcoin mining operations.

Economy and Information Commission of Xinjiang

PRC authorities obliged the electricity suppliers from Xinjiang Province to regularly report on the activities of local companies engaged in bitcoin mining.

This decision largely affected the activities of the mining companies that carry out operations in this region. So, Scott Meng, the head of the Canadian blockchainn start-up, who is also engaged in the mining in Xinjiang, said that the measures taken by the Chinese authorities "definitely had an impact" on local companies.

I have two partners (in the region): one has 18,000 crypto miners, the other has 40,000. And they have been crying for help in the past days, urging me to look for places in the U.S. and Canada (as substitutes). But even for me, I have to get electricity first. And even if I had that, we need to build farms from scratch.

Scott Meng

CEO, Canadian Blockchain Startup

As reported, in June 2017, the EIC also issued a notice to municipal governments asking them to be careful when supporting bitcoin mining companies.

Mining Ban in China Won't Affect Bitmain & Canaan

This is said by the companies themself; also, Bitmain and Canaan did not indicate whether they intend to move the business abroad
11 April 2019   201

The prospect of a ban on mining in China will not have an impact on the operating activities of mining giants Bitmain and Canaan in the short term. This was stated by representatives of the press services of companies, 8btc reports.

At the same time, Bitmain and Canaan did not indicate whether they intend to move the business abroad, if the mining ban is set at the legislative level.

Note that China currently holds a dominant position in mining Bitcoin and Ethereum.

According to local cryptoexperts, mining equipment manufacturers will exist as long as Bitcoin has value.

Earlier in April, the National Development and Reform Commission of China issued a bill that called mining an “undesirable industry” and proposed banning it.

So far, the initiative has no legal force. Public discussion of the bill will last until May 7.