The decision of the Xinjiang crypto mining shutdown has also highlighted the country’s emerging CO2 emissions which have been a great source of contemplation for the local authorities.
The order has been reported to come under effect immediately as China has been on a spree for the past few months in prohibiting online crypto and BTC transactions. China had previously banned all major BTC social media platforms on its official social networking site Weibo and has been actively pursuing the idea of a complete suspension of Crypto-related transactions in the region.
The Changji Prefecture Government in Xinjiang had issued a circular to the subordinate government offices in Zhundong Economic Technological development park to shut down their Bitcoin and crypto undertakings. The park is said to be a major hub for BTC mining in the country.
Fluctuations Recorded in Bitcoin’s Hash Rate after News on Xinjiang Mining
After the news of the impending shutdown, the BTC hash rate might suffer a considerable setback which may take a serious toll on Bitcoin’s financial health as a whole.
The local reports have not yet clarified the details on whether this suspension will be a temporary one; however, it has been recorded that the miners in the Inner Mongolia region have been moving out since the month of March and have contributed significantly to the growing speculation.
Chinese crypto influencer and founder of Primitive Ventures Dovey Wan has tweeted how Sichuan’s crypto market is the last ray of hope for miners in China. The Sichuanese Government has allowed the miners to trade this season however the notice also warns the miners to look for alternatives for better stability.
China Restricting Crypto Mining to Control the Rising CO2 Emissions
The decision of the Xinjiang crypto mining shutdown has also highlighted the country’s emerging CO2 emissions which have been a great source of contemplation for the local authorities. According to U.Today, Chinese President Xi Jinping has made an official statement on cutting all major high energy carbon consuming projects by 2026 and practicing restraint on carbon emission industries to establish energy equilibrium.
Crypto mining has been always linked with heavy carbon mining techniques that have been cited by government officials as one of the reasons to ban crypto and BTC activities in the country. The miners have also been seen migrating to other sustainable and cheap sources of mining to regain their expertise and domain back.
Juhi Mirza is an archaeological major who is obsessive about blockchain/Crypto technology and deems it to be the foundational philosophy of the future. Her dogged ability to research and crystallise technical facts/multiple perspectives into rivetting stories makes her an accessible finance writer. She tends to her archaeological pursuits and loves unearthing the past over the weekends.