Confusion Grows Surrounding Official Chinese Position Regarding Bitcoin Mining

In recent days a number of conflicting reports have surfaced pertaining to the stance of China’s government with regards to bitcoin mining. Last week, Bloomberg reported that the People’s Bank of China (PBOC) had met to discuss curbing mining operations in China, whilst Chinese media reports denied such – however, it has since emerged that the local government of Xinjiang province has mandated an “orderly exit” of its bitcoin mining industry. Despite widespread speculation that the long-feared Chinese crackdown on cryptocurrency mining may have begun, the establishment of international facilities on the part of leading mining pools has led to analysts predicting that much of the bitcoin mining industry will be able to weather a Chinese regulatory crackdown.

Also Read: Chinese Authorities Ask Local Miners to Submit Monthly Status Reports

PBOC to Limit Power Consumption of Bitcoin Mining Industry

Confusion Grows Surrounding Official Chinese Position Regarding Bitcoin MiningOn the 3rd of January, Bloomberg reported that “people familiar with the matter” had stated that the PBOC will take action to limit the power consumed by bitcoin miners. The source stated that there is growing concern among Chinese officials that the energy-intensive requirements of the large-scale cryptocurrency mines are disrupting the distribution of power as intended by the central government.

In November, a document surfaced suggesting that a state-owned power company in Sichuan would seek to crack down on bitcoin mining, however, the company stated that the letter had been misconstrued due to translation errors, and that such pertained to “fail[ure]s” of “small hydropower stations” to “give priority to… the local… electricity demand.” Later that month, met with the manager of a bitcoin mining farm Read More Here