Anhui became the last Chinese province to announce a complete ban on cryptocurrency mining. The provincial government said the move would help alleviate severe power shortages over the next three years. Thus, mining of cryptocurrency now completely banned in China.
The local authorities of the Chinese province of Anhui notified all miners that they must close all their projects that related to the extraction of cryptocurrencies. In addition, control over other energy-related projects will be tightened so that they reduce the supply of electricity. The situation is similar in Henan province. In addition, the State Grid Corporation of China, which controls the vast majority of the country’s electricity, sent an official notice to all parts of the country asking them to close the mining of virtual currency.
Anhui is not for mining
Anhui Province has become another of the provinces that began to impose harsh. In fact, repressive measures against the mining of cryptocurrencies. Nearly all cryptocurrency mining farms closed in Yunnan. In addition, some of the largest provinces such as Sichuan, Xinjiang, where mining centers were located, also ordered miners to cease their activities.
At the moment, at least 90 percent of projects related to cryptocurrency mining closed in China. This policy has led to the fact that Bitcoin hashrate dropped to almost the level of 2019.
The Bitcoin network also recorded a negative adjustment in mining difficulty. The difficulty is likely to decrease even more.
Miners are forced to move to other states
This policy of the Chinese authorities leads to the fact that miners intend to move to other states. In particular, they move to the United States. At the same time, the most important mining pools have not yet left the PRC. So the United States should not be considered a new location for Chinese miners.
Everything that is now happening to miners in the PRC is a vivid evidence of how the country’s authorities are trying to put under strict control all areas related to cryptocurrencies. To a certain extent, this is also due to the fact that China has also begun to pay more attention to the environment. Since the ecological situation in the country, especially in the central provinces, leaves much to be desired.
Most likely, such a policy of the authorities will lead to the fact that miners forced to move to other states. Or they will have to switch to other energy sources.
In fact, everything that is happening now in the PRC can become a prototype for the actions of other states. Which can also begin to either prohibit or strictly regulate the mining industry. Perhaps the will do this also with cryptocurrencies, and given the actions of regulators in relation to them, this may well happen in the near future.
Bitcoin rate always reacts to negative news from China. Each mining ban drove the first cryptocurrency lower and lower, and now Bitcoin has also lost 4% of its value under the influence of this ban. Bitcoin is currently trading at $ 31,156.