Crypto: The authorities in the Chinese province of Sichuan demanded a ban on mining

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The authorities in the Chinese province of Sichuan demanded a ban on mining

Local authorities in the Chinese province of Sichuan published a statement on subordinate authorities demanding to ban cryptocurrency mining in the region. If the order is not fulfilled, the government will advise to conduct an investigation into illegal projects. This will result in fines, bans and other administrative penalties. Information is provided by the PANews publication on his Twitter account.

“Hydroelectric plants in our district should immediately stop investing in mining projects and no longer cooperate with them. Otherwise, we recommend that the district government initiate an investigation and deal with illegal construction, adopt prohibitions, fines, issue orders for the independent demolition of buildings and other administrative measures, ”the document states.

PANews noted that the Sichuan authorities previously, on the contrary, supported the mining industry. Because of this, the region was able to generate about 9.6% of the bitcoin network's hashrate. The results achieved will be lost if the ban really comes into effect, according to the publication.

But Twitter user Molly, head of marketing at blockchain startup HashKeyhub and a former employee of Bitcoin Magazine, demanded no panic. According to her, the ban will not happen, and conflicting decrees for the local government are normal practice.

"Don't worry, this will not happen, and it is normal for the government to send contradictory messages. The authorities will not really clean the industry, they simply will not give it public support," Molly suggested.

Yesterday, May 21, it became known that some of the mining sites in the Chinese province of Sichuan disconnected equipment due to lack of electricity. Since the beginning of the month, the load on the region's grid has increased by 22%, while the water volume in rivers has decreased by 20%, which has led to a shortage of hydropower.

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