Reports have emerged detailing the alleged forceful cessation of large-scale bitcoin mines in China’s southwest, with insiders quoting a lack of state-sanctioned regulatory policy regarding cryptocurrency mining as the official reasoning cited for such.
The Closures Come at a Critical Moment for Mining Businesses, as Bitcoin’s Price Has Tripled over the Course of 2017The absence of government-backed regulation over the practice of bitcoin mining has apparently prompted the Chinese central government to forcefully influence the cessation of many commercial bitcoin mining operations in Sichuan.
China’s province of Sichuan has attracted great interest from bitcoin investors and entrepreneurs in recent years, as the province has abundant access to hydropower and offers huge savings in electricity costs for mining businesses that operate in Sichuan.
The closures come at a critical moment for mining businesses, as Bitcoin’s price has tripled over the course of 2017. “The price is so high at the moment,” said a bitcoin mine manager in an interview with Yicai Global, “shutting down costs mine owners hundreds of thousands of yuan every day.”
The reports appear at odds with the Chinese government’s recent to decision to again allow deposits and withdrawals in fiat currencies to be processed by the country’s major exchanges. The moves come ahead of announcements that The People’s Bank of China will roll out regulatory measures for bitcoin trading designed to prevent money laundering in June.
https://news.bitcoin.com/bitcoin-mines-in-chinese-province-sichuan-allegedly-forced-to-shut-down/
