Chinese Region Halts Cryptocurrency Mining Operations

In-line with a strict government crackdown on all things crypto, a small province in China is forced to shut-down illegal bitcoin mining operations in the region before August 2018.Mining Crackdown.

As reported recently on local news Jinse, the northwestern Chinese region of Xinjiang Uyghur has identified "Illegal" mining operations taking advantage of the naturally cool, mountainous region.

Xinjiang's favorable climate and modest electricity rates have reportedly attracted mining ventures to the region's otherwise agriculture-intensive industry.

While the Chinese government is pushing major cities like Beijing and Shanghai to boost Xinjiang's economy, small-scale miners are evidently unwelcome.

The authority criticized significant electricity usage by mining companies and demanded local utility suppliers forcefully shut down such companies.

The EIC tasked local utility firms with cracking down on illegal mining operations, upon their discretion after relevant due diligence to uncover unlicenced firms.

The action followed a January 2018 effort when Xinjiang authorities called for regular reports on bitcoin mining activities in all sub-regions.

Mining operations will likely be compromised by this development.

Although no exact number for mining ventures in the region exists, Bitmain notably announced in November 2016 its enterprising plans to shift to Xinjiang, primarily for its vast land resources, abundant electricity, and moderate weather.

The mining giant recently raised a Series B funding of $300-400 million from investors like Sequoia Capital.