China’s onslaught on the Bitcoin and crypto industry is far from over. In a fresh blow to whatever’s left of the mining industry in China, the country’s authorities have now resorted to prohibit the hydropower stations from providing power to crypto mining companies.
According to the latest report, China’s People’s Government Office of Yingjiang County, Yunnan Province has released a notice calling to ban all illegal hydropower stations from supplying Bitcoin and cryptocurrency mining companies. It urged municipalities across different provinces to notify all hydropower stations in their jurisdiction to stop them from supplying electricity for crypto mining firms and also directed the removal of any mining equipment or rigs, if any, before Wednesday, 25th of August from the power plant areas.
The circular also mentioned that the regulatory entities intend to establish workshops and related departments to force the dismantling of the crypto mining rigs. There is no room for negotiations and if the hydropower stations do not comply with the warning, they will be dismantled by the State Energy Bureau.
The official report further mentioned,
“The Yunnan Provincial Energy Bureau previously stated that it will seriously investigate and punish the illegal activities of Bitcoin mining companies relying on power generation companies, unauthorized access to electricity, evasion of national transmission and distribution fees, funds, and additional profit-making.”
China’s relationship with crypto industry
China has always been wary of the cryptocurrency industry despite being pro-blockchain. Earlier this year, the regulatory authorities in the country outlawed the mining of Bitcoin and cryptocurrencies. This was enough to trigger not just a slew of corrections in the market but also caused a wave of migration by miners from China to central Asia and North America.
Since then, Bitcoin has seen a notable recovery. For instance, it broke a crucial high to hit $50K on the 23rd of August. TWJ had earlier reported about the network’s steady hash rate and difficulty recovery.
