Tag : Crackdown

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Cryptocurrency Mining Operation has Been Halted in Chinese Region


Keeping in compliance with the Chinese government’s plan to eradicate Bitcoin mining operations in the country by the end of this month, a small Chinese province has shut down an illegal cryptocurrency mining operation in the region.
The regional news, Jinse, reported that Xinjiang Uyghur in the northwestern part of China has identified what is an illegal mining operation taking place in the region. The small province is an ideal location to carry out the mining operation due to the naturally cold climate in the region, which significantly reduces the need for cooling systems for the heavy mining computers they had set up within their mining operation.
The region has been subject to the agriculture industry’s attention mainly, until the point that cryptocurrency mining operations began in the country. Since then, there have been a number of ventures in the region looking to utilize the cryptocurrency mining friendly environment to carry out operations. While the government has been pushing the larger metropolitan cities like Shanghai and Beijing to help boost the economy of the Xinjiang region, it is obvious that they are not going to allow that to happen through the prospect of cryptocurrency mining.
According to a notice issued by the Economic and Information Commission of Xinjiang, any entity which is not formally registered with the Chinese government and is utilizing electricity without the necessary permits is considered to be an operator of illegal mining. The government notice also demanded the shutting down of any such companies by the local utility suppliers.
Utility Firms Delegated With Crackdown
The EIC has essentially tasked the local utility suppliers to crackdown on all the illegal mining operations according to their discretion. The departments have not been given a very long time to follow through on the directives of the government. Their deadline to shut down all the illegal mining operations within their respective regions has to be done and dealt with by the August of 2018.
In the case that one of the local suppliers of utilities is not able to shut down the illegal mining operations in the given time, they will be held accountable and face the consequences of incompetency.
This decision follows the efforts which began at the start of 2018 with the authorities in the Xinjiang province calling for regular reporting being done on Bitcoin mining operations within the different areas of the province. Initially, they wanted to create the sort of regulatory framework to phase these illegal Bitcoin mining operations out in a diplomatic manner but the latest turn of events clearly shows that diplomacy has gone out the window.