Hashrate is at stake - in Sichuan intend to limit bitcoin mining

The authorities of the Gardze Tibet Autonomous Region in China began to put pressure on enterprises thatcryptocurrency mining, due to a shortage of electricity in the dry season.

According to 8btc, the autonomous governmentcounties in Sichuan will hold a meeting on restrictions for the Bitcoin mining industry. The meeting will be attended by 12 regulators, including the Environmental Inspectorate, tax authorities and the local branch of the State Electric Grid Corporation of China.

Representatives of local power plants and 10 mining enterprises, one of which is owned by Bitmain, should also attend the event.

The government explained that the purpose of the meeting was to comprehensively discuss the limitations of Bitcoin mining operations, and we are not talking about closing them.

The authorities are concerned about the lack of sufficientreserve capacities for normal power supply of the region in a dry winter. According to their forecasts, household demand for electricity will grow by 30% compared to last winter.

Surplus hydropower resources per seasonrains (from May to September) and, accordingly, low electricity prices have made Sichuan an attractive location for miners. According to CoinShares, the province accounts for 54% of the hashrate of the first cryptocurrency network, while the share of all Chinese miners is 65%.

Now in Sichuan the dry season (from October toApril), and in the absence of surplus electricity, power plants are primarily obliged to direct it to social consumption. Some mining farms for this period are moving to regions where thermal power plants are concentrated, such as Xinjiang and Inner Mongolia.

Recall, the former vice president of the China Securities Regulatory Commission, Yang Jiang believes that Sichuan has every opportunity to attract miners even more widely.