Sichuan Officials Order Shutdown of Crypto Mining Facilities

According to Chinese media reports, the government of Ya’an – a city in the Sichuan region – has started shutting down crypto mining operations by force and redeploying the hydroelectric plants used to power them.

The news follows that of the China crackdown on Bitcoin mining we reported on a few weeks ago.

Ethereum Hashrate Down By 7%

The government order has apparently caused Ethereum’s hashrate to drop by 7%. It’s safe to assume the hashrate of Bitcoin has also gone down – although at the time of writing, there was no data to back this up.

The cease-and-desist orders started going out on June 18 as the local Ya’an government decided that the hydroelectric power being used to fuel these mining farms could be put to better use elsewhere.


A total of 26 big-league mining plants were identified and shut down. Although lesser mining farms seem to have been passed up by the order, it’s unclear whether these smaller operations will be allowed to remain open.

There are many small and medium-sized hydropower stations in Yunnan, Sichuan, and it may be difficult for them to receive government supervision. However, large-scale projects will be shut down in the short term.

PANews, China

Hydropower Means Green Energy is Not an Issue

This isn’t about green energy, either – according to Jiang Zhuoer, the founder of mining pool BTC.Top, all crypto miners in Sichuan are running their operations off hydropower. This mirrors the overall situation across China, where up to 90% of mining operations allegedly run on hydropower as well.

Following the document served on June 18, law enforcement agencies immediately began to shut down the identified mining operations. Furthermore, a report to local government authorities is due on June 25 regarding the success of the operation.

This could mean one of two things:

  • First, it could mean the government simply wants to see the exact impact of large-scale mining operations on the local power grid, after which a more permanent decision can be taken
  • However, this could also mean the mining operations have shut for good – and that the requested report is merely a formality.

With China shutting down its mining operations, we may see other countries such as the US and El Salvador take up the hashpower by running eco-friendly crypto mining operations.

Cristian Lipciuc

Cristian Lipciuc

Cristian Lipciuc is a blockchain journalist working with startup companies across multiple domains such as freelancing, app development & cryptocurrency. Cristian specializes in applied blockchain technologies, cryptocurrency integration, the adoption of new technologies by governments, and cybersecurity.

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