China’s cryptocurrency-mining crackdown spreads to Yunnan in the southwest. The Chinese Government has become one of the first to clamp down on the huge amounts of electricity used in cryptocurrency mining. The rise of cryptocurrencies in China has led to a two-pronged approach to curbing the spread of Bitcoin and other digital currencies. The State Council made up of the political leadership of the nation, has decided to limit the amount of power needed to mine for cryptocurrencies. The second fork in the road for cryptocurrency miners and dealers is the surging price the State Council believes will cause economic problems in the future.
The Unauthorized Use of Electricity
The decision by the political leadership of China to limit the development of the cryptocurrency market has caused panic for cryptocurrency mining operators. Several of the largest mining organizations have based themselves in the Yunnan region, where unauthorized electricity use has become a problem. The Energy Administration of Yunnan has been delivering notices to suspected Bitcoin mining operations in the region. The Yunnan region is following the deadlines imposed by the State Council of mining and dealing with cryptocurrencies to be completed by the end of June.
Changes Spread Across the Nation
The power of the Chinese State Council has forced several territories to begin exploring ways of limiting the cryptocurrency markets. Alongside the restrictions brought into play in Yunnan, the regions of Qinghai and Xinjiang have begun ordering cryptocurrency groups to close as soon as possible. Other territories have begun to investigate the electricity use and financial issues in the sector, including Inner Mongolia and Sichuan.
Possible Moves to the U.S.
The climate problems caused by the power production sector have led to the Chinese Government ordering its closure. Florida and Texas are among the possible destinations for cryptocurrency mining groups seeking low electricity prices. Despite the rolling blackouts affecting Texas last winter, the Lone Star State remains a viable option for those looking to escape China. Miami is another U.S. city high on the list of miners because of the cheap nuclear power offered by the state.