Officials forcefully shut down bitcoin mines, private investment becomes a casualty

Chinese officials are further regulating cryptocurrency “mining” activities such as bitcoin, with all cryptocurrency “mining sites” in Sichuan province being cut off from the internet and electricity since the early hours of Sunday (20). The mainland has recently been pushing policies to crack down on the industry, and data shows that the current average bitcoin computing power across the network has fallen nearly 34% from its historical peak a month ago. This overnight financial purge has resulted in tens of billions of dollars of private capital being lost. According to industry insiders, the flow of money invested in bitcoin is not under official control, making officials wary and making investors the victims of official mismanagement.

Sichuan is the largest concentration of bitcoin “miners” in China, with about 26 “mining” projects, mainly in areas with abundant water and electricity, such as Ya’an, Ganzi and Aba. Workers at several bitcoin mining sites in Kangding, Ganzi Prefecture, disclosed on social media that their sites were shut down in the early hours of Sunday morning (20) after a power cut. Sources said at least hundreds of mining sites in Ganzi alone were shut down, and it remains unclear whether they will be able to resume operations.

The source said that under the strict ban, many mines are biding their time, hoping to avoid this calamity and then quietly switch to underground operations. Our reporter has contacted a number of mining sites, but the owners denied that they were mining.

The mine: we do not have a mining machine, there is no situation. You have to check it out yourself and read the news.

The well-known mining company Wuji Chain Technology also denied mining.

The chain: that, you need to ask the government issued that thing ah. I’m not sure, because we’re not doing this aspect anymore.

Industry insider Mr. He said mining investors across the country are now waiting to see if they can squeak by and survive. He pointed out that a used the latest model of mining machine investment of at least 40,000, a large number of mine owners are still holding the resumption of business block Xiang.

Mr. He said: almost a year, right S19 out, now the current best is 110T, now outside a lot of people are selling ah, 40,000 or so it. Turn off first, 25, 6, etc. notice. There are many people are waiting, are waiting and watching, and not so anxious to throw out. A S19 a machine a day is about 130 yuan (revenue) now thousands of thousands (Taiwan machine) are waiting for news, the situation is really not easy to say, and then open the possibility should not be too big. The government wants you to shut down, what can be done?

Mr. He pointed out that only Xinjiang Changji, has shut down about 7 million mining machines, and Sichuan’s abundant water period hydroelectricity prices are even lower, the scale of mining machines is even larger. Those who were still being encouraged by the government last year, and even cooperated with the government, as well as the state grid mega-mines, are now in an even more embarrassing situation. There is absolutely no word on who should pay for this huge loss.

Mr. Chen said: I am now in Xinjiang ah, I have not returned to Sichuan. Xinjiang, Inner Mongolia are thermal power, (per unit of electricity) more than 30 cents, Sichuan side electricity Cai 20 cents more than ah. Domestic are not allowed to do we can only go abroad. (Loss) tens of billions of dollars should be more than it, like Sichuan Dadu River, and the Qingyi River, Kangding and Aba State, 20,000, 30,000 (units) of the mine, more than 100,000, the government to build, the state grid electricity, but also more. Then, there are several more than 300,000. More than three hundred thousand load is 100,000 machines. Then I am now here in Xinjiang, 7, 800,000 load several, more than 100,000 load that is much more. Anyway, more than 20 million load in Changji Prefecture, 6 or 7 million units (mining machines), it was shut down at once.

The station called the Sichuan Provincial Bureau of Market Supervision and the Aba State Bureau of Market Supervision respectively, but both declined to respond to interview requests.

This year, as the scale of private capital investment in bitcoin continues to increase, and the flow of funds is completely out of official control, making officials wary, believing that the flow of huge amounts of money is unknown and has concerns about shaking the foundations of the regime. In the name of energy waste and financial irregularities, officials have cracked down on private bitcoin investment, attempting to encircle an investment model that is completely outside of their financial supervision. Earlier, a large number of bitcoin mining machines have been shut down in Xinjiang, Inner Mongolia, Qinghai and Yunnan.

As Punch News reported earlier, a meeting of the State Council’s financial committee held on May 21 called for a crackdown on bitcoin “mining” and trading, and several regulators later announced that they wanted to prevent the risk of speculation in cryptocurrency trading. The central bank also banned financial and payment institutions from using cryptocurrencies to price their products and services and from conducting business related to cryptocurrencies. In addition, mainland police also announced that they had recently arrested more than 1,100 suspects for “laundering” cryptocurrencies using methods such as phone and internet fraud.