Chinese province of Guangdong has issued a new ban on Bitcoin mining

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Authorities in China’s Guangdong province have issued a new ban on cryptocurrency mining equipment and orders for the seizure of any found.

On Saturday, the Guangdong Provincial Development and Reform Commission imposed a new prohibition, claiming that cryptocurrency mining consumes a lot of energy and emits a lot of carbon while contributing little to national economic operations.

The authority ordered mining equipment to be halted and confiscated in compliance with the People’s Republic of China’s Energy Conservation Law.

Government personnel at the provincial level have been ordered to take appropriate steps to investigate and seize digital currency mining activities.

The Provincial Development and Reform Commission and the Provincial Department of Justice, according to the release, have advised all municipalities to intensify administrative law enforcement of digital currency mining activities.

Administrative law enforcement agencies are intended to follow stringent, standardized, unbiased, and civilized law enforcement procedures and administer administrative penalties in compliance with legislative authority and procedures.

Ban on cryptocurrency mining

The action by the Guangdong government came after the Chinese government issued a blanket ban on virtual mining activities in June of last year.

After the worldwide Bitcoin boom revitalized Chinese speculative trade in cryptocurrencies, China’s State Council tightened down on Bitcoin trading and mining in late May 2021 to ward off environmental and financial concerns. The crackdown occurred as the People’s Bank of China (PBoC), its central bank, ramped up testing its national digital currency.

Last year, China’s blanket ban on cryptocurrency mining effectively shut down a sector that accounted for more than half of worldwide Bitcoin output. Local miners dumped their machines in despair due to the crackdown, while others sought sanctuary in Kazakhstan and the United States.

Mining businesses outside of China have continued to prosper as their proportion of the global hash rate of the Bitcoin network has grown as a result of China’s closure.

The United States’ share of crypto mining is now projected to be 40%. The United States is followed by Kazakhstan, which has an 18% rate, and Russia, with an 11% rate.

Despite these challenges, global interest in Bitcoin mining has grown, increasing mining activity.

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