Chinese Authorities Ask Local Miners to Submit Monthly Status Reports

Xinjiang Province regulators have issued an official document informing local bitcoin miners to submit status reports on a specific schedule.

Also Read: Japanese ‘Virtual Currency Girls’ Spreading Cryptocurrency Knowledge

An Orderly Exit

Chinese Authorities Ask Local Miners to Submit a Monthly Status Report

Bitcoin mining companies were told to write a status report before Jan. 5, according to a government notice signed by a Xinjiang committee in charge of overseeing internet finance risks (The Committee) that was circulated online and verified by people familiar with the matter. The document reads that:

Xinjiang is home to multiple bitcoin miners, which are both energy-intensive and highly speculative. To curb financial risks and encourage real economy, approaches must be taken to guide miners toward an “orderly” exit from the business.

The document detailed that the Xinjiang Commission of Economy and Information Technology shall update the operation and exit status of mining companies before the 5th of every month and submit relative materials to The Committee.

Which Approaches Be Taken?

Many of the world’s largest miners have set up in remote and mountainous Sichuan and Yunnan provinces for cheap electricity. But Chinese authorities proposed restrictions on power consumption to curb the industry.

Based on another document signed by the Financial Market of the PBOC, the authorities plan to limit the industry’s power use. It says that:

Local governments shall coordinate with multiple departments to take actions concerning electricity price, land use, tax and environmental protection in an effort to guide miners orderly exit .

<img src="https://news.bitcoin.com/wp-content/uploads/2018/01/empty–300×298.jpeg" alt="Chinese Authorities Ask Local Miners to Submit Monthly Status Reports" width="200" height="198" srcset="https://news.bitcoin.com/wp-content/uploads/2018/01/empty–300×298.jpeg 300w, https://news.bitcoin.com/wp-content/uploads/2018/01/empty–150×150.jpeg 150w, https://news.bitcoin.com/wp-content/uploads/2018/01/empty–768×764.jpeg 768w, https://news.bitcoin.com/wp-content/uploads/2018/01/empty–1024×1018.jpeg 1024w, https://news.bitcoin.com/wp-content/uploads/2018/01/empty–696×692.jpeg 696w, https://news.bitcoin.com/wp-content/uploads/2018/01/empty–1068×1062.jpeg 1068w, https://news.bitcoin.com/wp-content/uploads/2018/01/empty–422×420.jpeg 422w, https://news.bitcoin.com/wp-content/uploads/2018/01/empty-.jpeg 1069w" sizes="(max-width: 200px) Read More Here