Chinese Power Provider Denies Bitcoin Mining Ban

A country-owned electric utility in China is rebuffing rumors that bitcoin mining has been deemed illegal by the authorities. Rumors spread within the last day indicating that the China’s State Grid was moving to prohibit bitcoin mining at a county stage in Sichuan province, an ostensibly excellent improvement given the region’s considerable water supply for electricity generation and the reality that profit-chasing bitcoin miners are established within the area.

A translated version of the document states that bitcoin mining is an unlawful activity, similarly including that every State Grid related generator this is concerned in powering bitcoin mining is likewise seemed as an unlawful practice, which will be prohibited. The document consists of the official stamp of the State Grid’s Dan Ba county branch, placed in Sichuan.

 

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Although quick circulated and stated by China’s local media raising questions on whether this type of choice can signal an administration move towards bitcoin mining One that could comply with crackdowns on initial coin offerings and the exchange-based buying and selling of digital currencies towards the chinese yuan, next statements suggest that the fears can be overblown.

In step with China’s business publication Caixin, local executives from the county branch showed the authenticity of the report but clarified it is just an inner memo and a number of the terms were drafted incorrectly. It’s essential to note that the document comes from a county branch rather than a statewide level, therefore diminishing the load it might carry.

The county department stated:

“We’re a nation-owned enterprise, not an administrative branch that has the power to determine whether or not bitcoin mining is valid or not.”

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The firm went on to make clear that a number of the small generators within the region can also have violated agreements that prioritize electric supplies for China’s citizens earlier than commercial enterprise including bitcoin mines. At the same time, this type of choice can signal a conflict between the State Grid’s county branch and the individual generators over the earnings that they make thru bitcoin mining.

Jiang Zhuoer, founder of China’s mining pool BTC.top noted:

“It’s a fight for the interests of hydropower stations.”

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