Local sources said authorities from Baoshan in China’s Yunnan province are stepping up efforts to combat miners and have ordered power producers to stop supplying miners to the city.

On November 30, Chinese cryptocurrency correspondent Colin Wu tweeted that several miners had informed him of the ban, and shared what appeared to be scanned copies of official documents issued to energy producers:

However, Wu added that the ban was likely enforced by local “economic interests” and could not indicate Beijing’s desire to suppress cryptocurrency operations:

It is not necessary to overestimate the consequences of this accident. The attitude of domestic energy companies in China towards cryptocurrency mining is often changing. This is a demand for economic interests, not political pressure. ”
The ban seems to coincide with a 24-hour decline in global hash rate of approx. 10% from 140 SBP to 125 SBP, although the correlation is far from causal.

According to the Cambridge University Bitcoin Electricity Consumption Index, Yunnan was the fourth largest mining region in China after Xinjiang, Sichuan and Inner Mongolia from April 2020. At that time, Yunnan accounted for 5.42% of the global retail tariff. ahead of all countries except China and the United States, Russia and Kazakhstan.

Wu said in June that the Yunnan government had ordered the closure of 64 illegal mines, seven of which are still under construction. The government has pointed to tax evasion and safety risk, including how the mines are connected to local hydropower plants.

In the same month, a local bitcoin mine caught fire and caused thousands of units to burn.

The mid-year campaign began immediately after the May 29 explosion at a hydroelectric power plant in Yunnan, which killed six people and injured five. The explosion is believed to have led to increased application of safety standards for hydropower plants in the region.

In April, the Yunnan state power grid also issued a document warning power producers against unauthorized transfers of power to bitcoin mines.

Source: CoinTelegraph