China’s war against cryptocurrencies doesn’t seem to have an end at the moment, with another province banning cryptocurrency mining activities.
Anhui Province Bans Crypto Mining
The crackdown on cryptocurrency mining activities continues in China, with another province shutting down crypto mining facilities. The Anhui province announced earlier today that it had suspended cryptocurrency mining activities in the region.
According to the authorities, the move was part of a larger effort to tackle growing electricity demand and an associated power supply shortage for at least three years. In addition to shutting down mining facilities, the province took other measures such as scrutinizing new initiatives that demand large energy consumption, building data centers and promoting the reform of electricity prices to optimize energy usage in the region.
There are reports that the ban on cryptocurrency mining activities is a coordinated attack. Anhui’s ban on crypto mining activities comes barely a month after the province of Sichuan cut off electricity supply to 26 mining farms and other smaller cryptocurrency miners.
Chinese crypto-journalist Colin Wu tweeted this earlier today, stating that the ban was an order from China’s State Grid Corporation. The State Grid wants the provinces to shut down cryptocurrency mining facilities across China, with Anhui already implementing the order.
The State Grid Corporation of China has issued a notice to all parts of the country requesting the closure of virtual currency mining. At present, some provinces with insufficient power in China, such as Henan and Anhui, have also begun to implement it. pic.twitter.com/kgDY1msDQ5
— Wu Blockchain (@WuBlockchain) July 14, 2021
Declining Hashrate Affects Crypto Prices
The ban on cryptocurrency mining activities has affected the prices of most cryptocurrencies, especially Bitcoin. The price of the leading cryptocurrency is down by over 40% from its all-time high.
Currently, Bitcoin’s price is down by 1.60% over the past 24 hours and is trading just above $32,500. The market has been in a bearish mode for the past few weeks, and the numerous crackdown reports from China haven’t helped in lifting the spirit of some investors.
However, with the recent bans, China will no longer be dominant in the cryptocurrency mining game. Other countries such as Kazakhstan, Russia, Iran and the United States are gaining more miners, and this is good for the cryptocurrency market. The hashrate would no longer be concentrated in China, making it a decentralized market.