September 26, 2022

China’s Guangdong province authorities have imposed a fresh ban on cryptocurrency mining equipment and ordered confiscations of such equipment where found.

Source: reuters.com
Source: reuters.com

The Guangdong Provincial Development and Reform Commission announced the fresh ban on Saturday, stating that cryptocurrency mining activities cause huge energy consumption and carbon emissions and have a low contribution to national economic activities.

In accordance with the Energy Conservation Law of the People’s Republic of China, the authority ordered the use of mining equipment to be stopped and confiscated according to law.

Government officials at the provincial level have been asked to implement relevant measures with regard to the investigations of digital currency mining activities as well as confiscations.

According to the announcement, the Provincial Development and Reform Commission and the Provincial Department of Justice have guided all localities to strengthen the administrative law enforcement of digital currency mining activities.

Administrative law enforcement departments at all levels are expected to adhere to strict, standardized, impartial, and civilized law enforcement and implement administrative punishments in accordance with statutory authorities and procedures.

Complementing Crypto Mining Ban

The move by the Guangdong authorities follows a complete ban the Chinese government imposed on virtual mining activities in June last year.

Source: forkast.news
Source: forkast.news

In late May 2021, China’s State Council cracked down on Bitcoin trading and mining as part of efforts to fend off environmental and financial concerns after the global Bitcoin craze revived Chinese speculative trading in crypto coins. The clampdown came as the country’s apex bank, the People’s Bank of China (PBoC) heightened tests of its national digital currency.

Last year, China’s sweeping ban on crypto mining paralyzed an industry that accounted for over 50% of global Bitcoin production. The crackdown caused local miners to dump their machines in despair while others sought refuge in places such as Kazakhstan and the US.

As a result of China’s shutdown, mining operations outside China have continued to benefit as their share of the global hash rate of the Bitcoin network has increased.

Today, it is estimated that the share of the US in crypto mining stands at 40%. The US is followed by Kazakhstan with a rate of 18%, and Russia comes third at 11%.

Despite all such pressures, global interests in Bitcoin mining have continued to rise and mining activities are increasing.