China threatens crypto mining companies with power cuts if they fail to register

13 Nov, 2018
by Richard Allen
News
China threatens crypto mining companies with power cuts if they fail to register

China’s crackdown on cryptocurrencies has so far resulted in exchanges being banned. Now, the government is taking aim at the plants where they’re mined, NewsBTC reports.

A notification has been issued to Bitcoin mining facilities in China’s Yunnan province by the Yingjiang Administration Bureau for Industry and Commerce, which enforces enterprise and consumer protection laws. The notice requires crypto mining businesses to register with the Power Supply Bureau. Failure to do so will result in power cuts.

The notification came as a result of discovering that mining facilities were using the cheap state-sponsored electricity to power their mining rigs. After some investigation, authorities discovered that many of these low-level but high-income businesses were receiving an unlimited supply of power but had no official business name.

China is home to the world’s largest collection of cryptocurrency mining operations, including Bitmain. The province of Yunnan has an abundance of coal, making electricity cheap in the region – the main advantage for Bitcoin mining companies. Authorities in the province offer power at $4 a kilowatt, significantly less than Europe and the US.

As such, the Yingjiang administration has taken steps to impose new regulations on the Bitcoin mining industry. They will now be required to register with an official name, undergo tax inspection, show the source of funding, and even state the amount of power they will need every month.

A recent study found that Bitcoin mining consumes almost as much energy as Denmark, but a German mining company may have found a more renewable way to mine Bitcoin.

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