The Strategist

Chinese county bans cryptocurrency mining entirely

06/10/2021 - 03:24

Authorities in China's Xinjiang Uygur Autonomous Region demanded a halt to cryptocurrency mining activities as of 9 June. This was reported by The Block.

Marco Verch via flickr
Marco Verch via flickr
It is noted that the administration of Zhongdong Economic and Technological Development Park will completely ban cryptocurrency mining. The 15,500-square-kilometre park is home to many coal mining enterprises, including coal-fired power plants and industrial plants.

It is where some of the largest bitcoin mining operations in the country are located. Miners are attracted by cheap and affordable electricity.

Recall that in May, the Chinese authorities said it was necessary to combat mining and crypto-trading and called for stricter regulation of mining and digital currency trading. Because of this, cryptocurrency mining companies BTC.TOP and HashCow stopped operating in the country. The Huobi exchange has also announced that it is suspending digital currency mining and servicing mainland Chinese customers.

Annual energy consumption by Chinese miners is expected to peak in 2024 at around 297 terawatt hours, exceeding Italy's entire energy consumption in 2016.