China’s government’ crackdown on bitcoin miners will not see them banned and will alternatively focus on eliminating their preferential treatment in local provinces. China’s publication Ciaxin is reporting that, contrary to rumors on Wednesday, China’s government have not requested bitcoin miners to close down their operations within the China.
China is home to almost -thirds of the bitcoin hash rate with mining operations rampant within the Sichuan province and the autonomous areas of Inner Mongolia and Tibet that offer reasonably priced hydroelectricity and cooler temperatures for the power-intensive process of digital currency mining.
Citing a supply with information of regulators’ movements, the crackdown will expand to removing pleasant treatment for mining centers near reasonably priced hydroelectric power. Preferential regulations in energy intake, tax cuts and land use for bitcoin mining centers are all beneath the scanner. Taking benefit of local connections, some mining facilities can also be consuming energy at a lower cost, the report noted.
The meant closed-door meeting held on Wednesday among the People’s Bank of China and participants of a main net finance regulator, will see government move to standardize the power utilization of a few bitcoin miners.
Chinese authorities’ officers have additionally been requested to research the nonstandard uses of energy after worries that high-energy consumption can have affected ordinary power utilization within the area. To oversee these curbs, the countrywide development and Reform Commission, will even take part as the country’s power supply regulator.
However, the crackdown on bitcoin mining in China could prove to be useful to the wider bitcoin environment by decentralizing the majority mining hash rate placed in China.