In China, reduced electricity supply has ensued local authorities in Sichuan province force bitcoin miners in the area to scale down their operations.
According to reports, this is because during the dry season electricity supply drops drastically in Southwest China.
The season extends from October down till April which is why local authorities are tightening the screws on mining companies to scale down their operations.
The initiative to curtail mining operations in Sichuan has been described as a part of the local government’s efforts to ensure sufficient power supplies.
This is to satisfy the needs of residents and cover the “normal” electricity consumption in the dry season.
Furthermore, a meeting has been scheduled with regulators, the state-run grid operator and mining companies.
Sichuan is arguably the most important Chinese region in terms of cryptocurrency mining as it accounts for over 50% bitcoin hash rate in China.
This is because the province’s abundant hydropower energy during the wet season, between May and September, along with the cool climate in the area.
In the same vein, bitcoin mining companies are officially prohibited but are tolerated in the Sichuan province during the wet seasons.
During the wet season, hydropower stations generate more electricity than is required utilizing the excess energy thanks to East Asia’s plum rain.
At the same time, it must be said that China is believed to control two-thirds of the bitcoin’s global hash rate.
Authorities action, a crackdown on bitcoin mining
Authorities in China have not only been cracking down on bitcoin farms but also they have been going after power plants.
Amidst all these developments, two power plants have received fines of around $140,000 in December for providing electricity to Bitcoin farms without obtaining a power supply license.
These activities arouse fear in the mind of crypto companies and players in the country as China police seized thousands of mining rigs in the city of Tangshan, Hebei province.
The confiscation came as part of an inspection of more than 70,000 households, 3,061 merchants, 1,470 communities, as well as factories, mines, courtyards and villages in the Kaiping District of Tangshan city.