Local authorities take up arms against illegal mining in Xinjiang

Posted 23 July, 2018

The authorities of Xinjiang Uyghur autonomous region in China expressed intentions to end the illegal mining of Bitcoin by end-August.

According to the news reports, the first rumours on this matter were heard last weekend, following the leak of the documents from the Economic and Information Commission in Xinjiang. Specifically, the authorities are said to take hard-line stance towards the illegal mining under which local power suppliers must report and end any activities for Bitcoin mining. 

The documents read that illegal miner is any person that mines cryptocurrencies without state licenses or official agreement with power supplier.

As for electricity providers, the local authorities intend to make suppliers deny providing services to illegal miners. Moreover, they must report on the completed activities by end-August. 

"Local utility agencies and companies will be held accountable if they failed to shut down 'illegal' bitcoin mining operations," reports the media citing the authority.

For reference, local power companies have had to regularly report about mining activities, which is a part of a large-scale project for gradual elimination of the miners in the country.

It is worth mentioning, that the players in this segment have already felt impact from such decision in the region. Specifically, this is confirmed by a representative of a Canada-based project running mining capacities in Xinjiang.

"I have two partners (in the region): one has 18,000 crypto miners, the other has 40,000. And they have been crying for help in the past days, urging me to look for places in the U.S. and Canada (as substitutes). But even for me, I have to get electricity first. And even if I had that, we need to build farms from scratch," as he stated.

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