Sichuan Energy Authorities to Discuss Bitcoin Mining Ban

Sichuan Energy Authorities to Discuss Bitcoin Mining Ban

May 27, 2021

Key Takeaways

  • Sichuan’s energy sector regulator has called a meeting to analyze the impact of banning Bitcoin mining.
  • The decision is difficult as miners help electricity providers earn revenue from the energy produced during peak season.
  • Inner Mongolia is already moving to ban Bitcoin mining.

The authoritative body for Sichuan’s energy sector is meeting on Jun. 2 to discuss the impact of shutting down Bitcoin mining operations in the region. 

Sichuan Discusses Mining Ban

Sichuan’s state agency for energy regulation, which operates under China’s National Energy Administration, has invited key energy sector stakeholders for a formal meeting on Jun. 2, in Chengdu. The main agenda of the meeting will be to discuss the impact of halting Bitcoin mining. 

The transcript of the invitation, dated May 25, surfaced on social media this morning. 

The invitees include State Grid’s Sichuan office, the Sichuan Energy Industry Investment Group, and the Energy Trading Center. 



News of China’s regulatory crackdown on cryptocurrencies sent shockwaves through the market last week, helping Bitcoin, Ethereum and other assets to plummet 30% in a day. It’s not clear what impact such meetings could have on Bitcoin or any other cryptocurrencies. According to Red Li, a Chinese entrepreneur in the mining space, they are not “unusual” and probably not urgent. 

Still, given their top agenda is the analysis of the impact of shutting down virtual cryptocurrency mining, it raises some concerns around further restrictions on mining. 



Moreover, news of new impositions around mining has surfaced on a regular basis recently. The latest wave of reports began after the State Council, led by China’s Vice Premier, announced its plans to curb the illicit trading behavior and energy utilization for Bitcoin mining.

On the other hand, the discussion before banning is important because it could impact the profitability of the energy producers. 

During the rainy season from April to September, hydroelectric power is abundant in the region, especially the Southern Chinese province of Sichuan. Bitcoin mining helps the producers earn from the electricity produced during peak times that would otherwise be wasted. 

Other regions such as Inner Mongolia, which is coal-dominated, are moving to implement a blanket ban on mining. Therefore, the producers in Sichuan will have to consider the loss from an outright ban on mining to meet the country’s demand. 

Li’s told Crypto Briefing that the mining hashrate in the first week of June could be a strong indicator of what will happen next in the market. While the meeting could be a non-event, investors shouldn’t rule out the chance of further capitulation. 


The information on or accessed through this website is obtained from independent sources we believe to be accurate and reliable, but Decentral Media, Inc. makes no representation or warranty as to the timeliness, completeness, or accuracy of any information on or accessed through this website. Decentral Media, Inc. is not an investment advisor. We do not give personalized investment advice or other financial advice. The information on this website is subject to change without notice. Some or all of the information on this website may become outdated, or it may be or become incomplete or inaccurate. We may, but are not obligated to, update any outdated, incomplete, or inaccurate information.

You should never make an investment decision on an ICO, IEO, or other investment based on the information on this website, and you should never interpret or otherwise rely on any of the information on this website as investment advice. We strongly recommend that you consult a licensed investment advisor or other qualified financial professional if you are seeking investment advice on an ICO, IEO, or other investment. We do not accept compensation in any form for analyzing or reporting on any ICO, IEO, cryptocurrency, currency, tokenized sales, securities, or commodities.

See full terms and conditions.

Source: Read Full Article