The Chinese government has recently decided to crack down on virtual currency “mining” and trading, and many local governments have been issuing rectification announcements. The official Xinhua News Agency recently released a series of investigative reports exposing the chaos in the country’s virtual currency “mining” scene, and some miners say the consolidation has set off a “wave of exodus”.
China’s State Council Financial Stability Development Commission said last month that authorities would crack down on bitcoin mining and trading practices and resolutely prevent individual risks from being passed on to the social sector.
Since then, Xinhua News Agency has visited several “mining sites” to understand the situation, pointing out that many mining sites in the western Sichuan region have registered companies under the names of “hydroelectric power consumption” and “data data center,” but are actually engaged in “mining. In fact, they are engaged in “mining” industry. Because many of the mines are located in remote mountainous areas, supervision is relatively difficult. Reports say that some large-scale mines can consume millions of kilowatts of electricity a day. The annual power consumption of a mine in the southwest is equivalent to the total annual power consumption of three cities.
The report also quoted a mine owner as saying that there has been a “wave of mining exodus” in the country after a new round of consolidation began, and that the number of servers at his own facility is now more than half of what it was in its heyday. According to his understanding, some miners plan to move their mines to Russia, Canada and other countries with abundant power.
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