Authorities in the Chinese province of Sichuan have issued a warning to suspendinvestments in cryptocurrency mining and the installation of new mining equipment.
In a warning from the local financial regulatorIt emphasizes that hydropower companies should “immediately stop” investments in virtual currency mining activities and not launch such projects.
“Otherwise, our department willrecommend that the country's authorities investigate and fight against illegal projects to build mining farms, prohibit them, impose fines, force them to dismantle farms, and take other actions against such projects, ”officials said.
Note that in Sichuan, which is famous for the significant generation of electricity from hydroelectric power plants, mining farms are located, generating about 10% of the Bitcoin network hashrate.
and those familiar with the situation said that restrictions might not be imposed, but mining companies would lose subsidies on electricity.
The regulator's warning is most likely due to a delayed rainy season in Sichuan province and a power shortage that has even forced local miners to shut down their equipment.
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