Chinese authorities to stop the activities of illegal miners by the end of summer

Chinese authorities to stop the activities of illegal miners by the end of summer

The Chinese authorities intend to put an end to the “illegal” actions on mining Bitcoin in the Xinjiang Uygur Autonomous region. Of the government’s plans to “curb” illegal mining until the end of August according to documents of the Commission of economy and information technology of Xinjiang (EIC).

In particular, local suppliers of electricity are obliged “to suppress illegal activities for mining Bitcoins” and report it to the authorities.

Also in the official documents States that under the category of “illegal mining” fall of operations in mining cryptocurrency without a license, while also using electricity without signing contracts with suppliers.

This decision is strongly influenced by the activities of mining companies operating in the region. Scott man, the head of the canadian blockchain startups, which also deals with Bitcoin mining in Xinjiang, said:

“In this region I have two partners: one 18 000 miners, another 40 000. Lately, they are desperately calling for help and asking me to find a place for them in the USA or Canada”

It is also worth noting that in June last year the Commission on economy and information technology of Xinjiang asked the local authorities with discretion to approve the activities of companies specializing in mining bitcoins.

“This activity does not improve the economy of the region but only causes a jump in the consumption of electricity”, — stated in the documents of the EIC.

In the summer / fall of 2017, many companies sought to maximize profits due to the location of mining centers in Chinese regions with cheap electricity. So, in November of last year to Xinjiang province “watched” the world leader in the mining of bitcoins — Bitmain.

We will remind, recently it became known that Bitmain, Canaan Creative and Ebang went to the list of “unicorns” (in China, Hong Kong, Macau and Taiwan). The capitalization of each of these companies far exceeded $ 1 billion.

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