Chinese Bitcoin Miners Pressured: To Scale Down Due to Electricity Shortages

Bitcoin (BTC) miners in the Chinese province of Sichuan are reportedly under pressure from local authorities to reduce their operations due to a shortage of electricity.

On Dec. 29, the announced that the electricity supply drops significantly in Southwest China during the dry season, which lasts from October to April. Which is why local authorities tighten the screws on mining companies to scale down their operations.

Bitcoin farms tolerated during wet seasons only

Bitcoin mining companies are officially banned but are allowed in the province of Sichuan during the rainy seasons. When hydropower stations produce more electricity than is required, using excess energy thanks to the plum rain in East Asia.

During the dry season, however, local authorities are trying to ensure adequate power supply for residents. And local businesses and thus shift their attention to regional Bitcoin farms. Which uses unsustainable amounts of electricity to operate their mining rigs.

Crackdown on Bitcoin mining

Not only did the Chinese authorities crackdown on BTC mining farms. They went after power plants as well. In December, two power plants issued fines of nearly $140,000 for providing electricity to Bitcoin farms without obtaining a license for power supply.

China, whose BTC miners currently account for as much as 66% of the global hash rate. Continues to fight crypto-miners ‘ illegal use of resources. In mid-November, regulators in China’s Inner Mongolia Autonomous Region strengthened their hold on crypto mining firms. Dispatching inspection units to ensure the region’s crypto token mining companies were cleaned up and rectified.

In December, nearly 7,000 crypto-mining machines were confiscated by Chinese authorities, illegally consuming electricity. The confiscation came as part of inspection in Tangshan City’s Kaiping District of over 70,000 homes, 3,061 traders, 1,470 families, as well as factories, mines, courtyards, and villages.

Source: cointelegraph.com

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