What will be the end of the Chinese government’s struggle against illegal mining?

Local utility agencies and companies will be responsible if they can not stop “illegal” bitcoin mining operations – Chinese authorities will stop the illegal mining of bitcoins in the Xinjiang Uyghur Autonomous Okrug. This information appeared on the Internet due to the leakage of documents from the Commission on Economy and Information Technology in Xinjiang (EIC). Under the illegal mining, the commission envisages the production of crypt currency without a license and the use of electricity without contracts with its suppliers.

Electricity suppliers from Xinjiang Province were ordered to keep accounts of the bitcoin miners in January this year. This project has affected the activities of mining companies in this region. The head of the Canadian start-up Scott Meng believes that this decision by the Chinese authorities “definitely affected” the local companies:

“In this region, I have two partners: it has 18,000 miners, and another 40,000. Recently, they are desperately calling for help and asking me to find a place in the US or Canada.

It is also worth noting that in June last year, the ECC urged local governments to be careful when approving the activities of companies specializing in bitcoin production.

“These operations do not bring anything to the economy of the region, but only cause a jump in electricity consumption”, the EIC said.


Reference: Many companies want to work in China, because there is cheap electricity. Last November, the global Bitcoin-Mining leader Bitmain was interested in Xinjiang Province. Due to the harsh Chinese government policy, many millionaires sell their digital assets and buy property abroad.

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