More bad news for the crypto mining industry in China as another province, this time Anhui, has gone after the industry. Reports suggest that the provincial energy authorities have issued crypto mining shut down notices to mining facilities throughout the province on the pretext that there is an acute shortage of power supply to consumers.
China’s list of regions closing down mining operations has been growing continuously. Now the new inclusion in the list is the Province of Anhui which too has decided to replicate the closure action against the mining industry. From now on, not even a single miner in the area is welcome to carry out mining operations.
It was reported by the local press that the regional authorities in Anhui are going after the mining industry by closing them down permanently. The authorities in Anhui are of the view that they are in desperate need of more energy. However, in order to fulfill the growing demand, the authorities have had to cut down the supply to mining facilities. The authorities further said that there are also certain several projects in the region that are energy-intensive. The power supply to these projects will also need to be reduced down, said the authorities. In addition, it has to be made sure that in the future power-intensive projects should need to be discouraged.
Hefei Media Group, which is a Chinese Government-owned news outlet, there is an acute shortage of power supply throughout China. In order to address this issue, the mechanism adopted is to permanently shut down crypto mining facilities and their mining operations. It was reported that the Chinse Government would want to continue to apply this policy for a further three years period.
Officials of the authorities in Anhui estimate that by the year 2024, the demand for electricity consumption will go above 73.14 million KW. However, at present, the authorities have an electricity source of only 48.4 million KW. There is therefore a huge gap in the electricity demand and the availability of electricity. In case this gap is not mitigated then there will be an acute shortage of electricity in the Province of Anhui in the coming time. On the basis of this, notices have been served upon the crypto miners operating in the Province. They have been immediately called upon to cease and desist from carrying out any mining operations.
Anhui authorities have also proposed a price increase in the local tariff. They are of the view that by doing so they will collect extra funds which could then be utilized towards encouraging power producing companies.
For crypto miners by now, there is no room for them to operate and do their business. According to the latest statistics, approximately 90% of the entire Bitcoin mining operations of China have been shut down.