It’s unclear if the shutdowns are due to orders handed down from above or the effect of China’s announced regulatory crackdown on crypto miners.
Due to the Chinese Communist Party’s 100th anniversary celebrations this week, bitcoin miners in China’s Yunnan region may be out of commission for a day, if not longer, according to reports.
According to Kevin Zhang, the vice president of mining infrastructure company Foundry Services, all significant Bitcoin (BTC) mining farms in Yunnan have been shut down today. In addition, Zhang said he knew of at least two crypto mining operations in the southwestern region that had received orders to shut electricity.
The shutdowns are supposedly related to the imminent Chinese Communist Party, or CCP, celebrations, which occur every year on July 1. Due to this year’s event being a centenary, officials seem to have taken extra precautions to ensure less pollution — China ranks as the 14th worst country in air quality — traffic, and political demonstrations. In an effort to reduce urban smog and prevent accidents, major industries such as coal mining and steel production would reportedly be shut down for up to a week.
It’s unclear whether the CCP anniversary is linked to the shutdowns or whether Chinese crypto miners react to a regulatory crackdown. The Financial Stability and Development Committee of the State Council declared that BTC mining would be restricted due to financial risk concerns in May. Since then, more stories have surfaced claiming that officials in Yunnan, Xinjiang, Inner Mongolia, and Qinghai are implementing crypto mining prohibitions.
While some companies have stated that the mining prohibition is forcing them to relocate to other areas inside China, others have indicated that they may be forced to leave the country entirely. Many cryptocurrency experts believe that the regulatory crackdown will drive mining companies to Texas, which has ample renewable energy and a fully deregulated power grid.