The Chinese government threatens miners with power cuts, asking them to register

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Recently, the local authority that oversees companies and protects consumers' rights has notified that the mining encryption farms and companies in the Chinese province of Yunnan are required to register with the Office for power supply. In case they refuse, the Office threatens miners with power outages, thus breaking the foundations necessary for the mining sector: a constant source of energy.

This occurred after the large mining companies proved to be useful for low-cost government-sponsored cryptographic transaction processing. The government found that these mining plants were producing rather high revenues but were hiding from the law. These companies and mining companies had access to an unlimited amount of uncontrolled energy, and their business was not even officially registered.

People's Republic of Miners

China has provided the largest amount of computing power for mining encryption needs. The biggest corporate actors in this sector are located inside the Great Wall of China, like Bitmain. These corporations not only own their vast reserves of miners, but also produce mining equipment. Pool extraction is much more profitable, since the combined computing power offers more possibilities to reach new blocks.

The great advantage that mining encrypt companies get in China is low-cost electricity. For example, in the aforementioned province of Yunnan which contains a large amount of coal mines, power comes at a rate of $ 4 per kilowatt hour. This is much less than the price of electricity in the United States and in European countries. Thus, the mining encryption companies took advantage of it, making huge profits and doing so without attracting attention. But now it seems over.

The river of economic power becomes dry

Local reports say miners have even managed to use local water stations to obtain even lower electricity tariffs. Many mining companies have done their job happily, enjoying electricity at just a few cents per kilowatt hour. They were working in a gray area, keeping taxes for themselves.

However, these energy facilities have now stopped providing miners with cheap electricity, following the orders of local authorities.

Respect or cease the activity

Since the authorities have decided to implement regulatory measures, the administration of the area now requires local encryption companies to register with their real names, declare their profits to pay taxes and show where it comes from. their financing. Furthermore, they must now specify the amount of energy they will need monthly on a regular basis.