The Sichuan branch of the National Development and Reform Commission (NDRC) and the Sichuan Energy Bureau issued an order on Friday to crack down on crypto mining operations in the province, according to a notification received and verified by CoinDesk.
Sichuan, arguably the largest hydro-based crypto mining hub in China, joins the ranks of the Chinese provinces that are cracking down on cracks Bitcoin Mining. A number of provinces have recently taken action against mining operations within their borders. Xinjiang, Inner Mongolia, Qinghai and Yunnan have already announced raids or partial bans on the industry.
Local governments, city governments and utilities, including the State Grid Corporation of China, in Sichuan will lead the crackdown. Local authorities plan to shut down 26 companies identified by the State Grid as potential crypto mining companies.
These companies are located in 15 water-rich counties in five cities and regions in Sichuan Province and will be closed until June 20, according to the announcement.
In the meantime, local and municipal authorities will immediately conduct an inspection. Any company that turns out to be a crypto mining project during the inspection will be closed. Local governments must report updates to the process to the NDRC by June 25.
The energy suppliers at the federal and provincial level are obliged to carry out a self-inspection and immediately suspend all crypto mining projects. The electricity companies should enforce the enforcement guideline “without discount”, it says in the communication.
The communication also stresses the responsibility of local governments in the raid. “Local governments must show their political stance and be aware of it, must guarantee the quality and quantity of the raid and maintain social stability,” the statement said.
The news came after Chinese local media reported Miners in Ya’an in Sichuan province had received a notice on Thursday evening asking them to stop mining operations for self-inspection. Miners expected an official announcement on Friday.
Read the full notice below:
Notice from the Sichuan National Development and Reform Commission and the Sichuan Energy Bureau on the Purge and Closure of Crypto Mining Projects
Local and city governments, the State Grid Corporation of China in Sichuan, the Sichuan Energy Investment Group, central electricity companies in Sichuan and state-owned electricity companies of the provinces:
Based on the 73rd routine session of the provincial government and the Bitcoin mining crackdown requirements from the 51st session of the State Council’s Finance and Development Committee, we issued the following:
1. Complete the process to filter out and close down crypto mining companies
Local governments, with the assistance of the State Grid and the Sichuan Energy Investment Group, will filter, purge, and close 26 companies by June 20 that have been inspected by the State Grid’s Sichuan office and reported as potential crypto mining projects. The NDRC monitors power consumption and shutdown and generates daily reports.
2. Carrying out self-inspections at Sichuan electricity companies
Central Sichuan electricity companies and provincial state-owned electricity companies should investigate their customers and immediately cut off their power supply if the inspection reveals that they are mining projects. Companies should enforce the government-imposed crackdown without a discount and report their inspection results to the NDRC before June 25th.
3. A thorough cleaning and inspection
Local governments should immediately cast a net for inspection and immediately shut down the crypto mining projects found during the inspection. Local governments must report the results to the NDRC before June 25th. Local governments are not allowed to approve crypto mining projects.
4. Make clear the responsibilities of those who are implementing the crackdown
Local governments are responsible for the crackdown. The municipalities must become more aware of their political stance, guarantee the quality and quantity of the task and maintain social stability.
UPDATE (June 18, 2021, 16:05 UTC): Updated with a translation of the notice.