Sichuan, China Regulators Meeting up with Power Companies Regarding Crypto Mining
Sichuan, which is the largest hydropower mining area in China and accounts for 10% of China's hash rate, is not the only province gathering information on crypto mining.
The situation in China about crypto mining hasn’t become clear yet but the good thing is the Sichuan government is holding a virtual currency mining research symposium where it will meet local power companies regarding crypto mining.
Sichuan is not the only province gathering information on crypto mining, an official at the Sichuan Energy Regulatory Office of National Energy Administration told Reuters.
To be held on June 2nd, the energy regulator is aiming to analyze the impact of shutting down mining on the consumption of wastewater and gather suggestions, as per local publication Wu Blockchain.
Sichuan is the largest hydropower mining area in China and accounts for 10% of China's hash rate.
As we reported, Chinese miners have already started to make their way overseas ahead of the government providing clarity on crypto mining. Some large miners have booked the mines in North America, Kazakhstan, and Russia. However, compared to China, these regions will cost them much more.
According to Chinanews, Binance's hash rate coin BTCST has also reportedly invested $3.1 million to acquire a mine in Tbilisi, Georgia, with a capacity of 29 million watts.
Amidst this, Spartan Black of crypto fund The Spartan Group shared that the date July 1st is of significance in China’s context as this marks the 100th year anniversary of the founding of the Chinese Communist Party. He said,
“The CCP needs to ensure stability ahead of the CCP centennial celebrations on July 1st. Heads will roll if there are any social disturbances ahead of one of the most important events in CCP history.”
This could further explain the sudden “change” in the government’s stance toward crypto assets, which the PBOC governor termed as an alternative asset class only last month.
Meanwhile, after reacting negatively to China banning Bitcoin and mining, the price of BTC is now showing signs of recovery.
But while BTC has gone past $40,000, the market is not sure about what’s to come next. It is expected that Bitcoin can very much continue to trade sideways for months before it goes on to hit new highs.