China is pushing its cryptominers out of its borders

14 Aug, 2018
by Arthur Sillers
News
China is pushing its cryptominers out of its borders

Despite an official primer on the subject released by the Chinese state party, China has been quite skeptical about cryptocurrency despite being a primary location for mining. According to Asia Crypto Today, Chinese policy is leading to a large scale exit on the part of regional crypto miners.

Most miners currently operating inside China's borders rely exclusively on hydroelectric power from the Sichuan region. Electricity in China is already growing more expensive, and China has been proposing severely cutting down such hydroelectric dams, citing their damage to the country's rivers and waterway system, as well as other environmental concerns.

The hydropower stations which are already scheduled to shut down have been estimated to also shut down as much as 60% of provincial cryptomining operations.

The obvious alternative commentators have pointed to is the Xinjiang province, which contains most mining outside Sichuan, but the municipal government has been especially tough on regulating such cryptomining, and has already released statements which amount to plans to strengthen management of virtual currencies and has stated they will guide the relocation of mining operations to other regions, which has cast doubt on cryptomining's future there.

China still contains about 70% of cryptomining globally, but it is becoming clear that Chinese mining hegemony is not a certainty.

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