The Chinese government continues cracking down on the cryptocurrency mining industry by suspending crypto mining operations in another province.
Authorities at Anhui, a small province in eastern China, have announced a set of measures to tackle growing electricity demand and an associated power supply shortage in the next three years, local news agency Hefei Online reported on Wednesday.
As part of Anhui’s efforts to curb energy consumption, the province plans to shut down crypto mining projects and scrutinize new initiatives that require large amounts of energy consumption. Local authorities also plan to adopt new practices for building data centers as well as promote the reform of electricity prices in order to optimize energy usage in the province.
The Anhui province of China is known for once being one of China’s poorest provinces, having only been removed from the country’s official list of impoverished areas in 2020. Anhui is the eighth largest province in the country by population. The province’s power grid reportedly comprises mostly coal-based power plants in addition to several hydropower facilities as well as wind- and solar-based plants.
Some reports suggest that the latest regulatory crackdown in Anhui is part of a broader country-wide initiative to shut down all crypto mining operations across China.
Chinese crypto journalist Colin Wu reported Wednesday that China's State Grid Corporation has issued a notice to all parts of the country requesting the closure of virtual currency mining. “At present, some provinces with insufficient power in China, such as Henan and Anhui, have also begun to implement it,” he added.
The State Grid Corporation of China has issued a notice to all parts of the country requesting the closure of virtual currency mining. At present, some provinces with insufficient power in China, such as Henan and Anhui, have also begun to implement it. pic.twitter.com/kgDY1msDQ5— Wu Blockchain (@WuBlockchain) July 14, 2021
The news comes amid a major regulatory crackdown on crypto mining in China, following a series of similar bans in other Chinese provinces including Yunnan and Sichuan, one of the country’s biggest hydropower-based mining hubs. Authorities in Xinjiang, Inner Mongolia and Qinghai also ordered mining operations to shutter in recent months.