Coindesk Logo

Chinese Province Cracks Down on Unauthorized (Not All) Bitcoin Mining

Chinese Province Cracks Down on Unauthorized (Not All) Bitcoin Mining

Chinese Province Cracks Down on Unauthorized (Not All) Bitcoin Mining

The Yunnan Energy Bureau stopped short of an all-out crypto mining ban.

The Yunnan Energy Bureau stopped short of an all-out crypto mining ban.

The Yunnan Energy Bureau stopped short of an all-out crypto mining ban.

AccessTimeIconJun 11, 2021, 6:16 PM
Updated May 9, 2023, 3:20 AM
Technicians exit a cooling chamber adjacent to a wall of bitcoin mining machines at a mining facility operated by Bitmain Technologies Ltd. in Ordos, Inner Mongolia, China.

The Yunnan Energy Bureau said Saturday it would crack down on illegal bitcoin mining operations in the province by the end of June but stopped short of an all-out mining ban.

Yunnan has started a campaign against the misuse of energy resources by bitcoin miners, according to China’s state media outlet Securities Times, citing an anonymous source from the bureau. “There is a possibility that it shuts down all bitcoin mining operations in Yunnan in the future.” the source said in the article. 

To be clear: Yunnan did not say it would eliminate all crypto activities, unlike recent notices from Inner Mongolia and Qinghai province. 

While the move will not result in a sweeping ban on all bitcoin mining activities, it would force some businesses out of Yunnan. It is not clear how many bitcoin mining sites would be considered illegal.

The crackdown foreshadows a tougher stance from hydro-based bitcoin mining hubs in China. Local authorities in Sichuan, another major hydro-based mining hub in China, are still in talks to determine a policy to regulate mining operations there.

UPDATE (June 14, 2021, 16:55 UTC): Updated with additional information.

Disclosure

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by Block.one; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk employees, including journalists, may receive options in the Bullish group as part of their compensation.


Learn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.