Anhui, a small province in eastern China, was the last region in the country to announce a complete ban on cryptocurrency mining. The provincial authorities explained their decision by an acute shortage of electricity, which will help smooth out this step.
According to the state news portal Hefei Media Group, the province will close all crypto mining projects as part of measures aimed at reducing electricity consumption, as the province faces “serious” energy shortages.
China’s State Council in late May promised to take harsh measures against Bitcoin mining and trading, citing the inevitable financial risks associated with this.
Following this, major Chinese mining centers, including Sichuan, Inner Mongolia, and Xinjiang, have taken harsh measures to eradicate Bitcoin mining and trading. Before the ban, China accounted for about 70% of the world’s bitcoin mining.
According to Hefei Media Group, in 2024 the demand for electricity in Anhui will grow to 73.14 million kWh, but at the moment the province can provide only 48.4 million kWh, which promises a “relatively large gap” and major problems with the supply of electricity in the future. In addition to eliminating cryptocurrency mining, Anhui also plans to reform electricity pricing to make it more economical.