Chinese Authorities Ask Local Miners to Submit Monthly Status Reports

Xinjiang Province regulators have issued an official document informing local bitcoin miners to submit status reports on a specific schedule.

Also Read: Japanese ‘Virtual Currency Girls’ Spreading Cryptocurrency Knowledge

An Orderly Exit

Bitcoin mining companies were told to write a status report before Jan. 5, according to a government notice signed by a Xinjiang committee in charge of overseeing internet finance risks (The Committee) that was circulated online and verified by people familiar with the matter. The document reads that:

Xinjiang is home to multiple bitcoin miners, which are both energy-intensive and highly speculative. To curb financial risks and encourage real economy, approaches must be taken to guide miners toward an “orderly” exit from the business.

The document detailed that the Xinjiang Commission of Economy and Information Technology shall update the operation and exit status of mining companies before the 5th of every month and submit relative materials to The Committee.

Which Approaches Be Taken?

Many of the world’s largest miners have set up in remote and mountainous Sichuan and Yunnan provinces for cheap electricity. But Chinese authorities proposed restrictions on power consumption to curb the industry.

Based on another document signed by the Financial Market of the PBOC, the authorities plan to limit the industry’s power use. It says that:

Local governments shall coordinate with multiple departments to take actions concerning electricity price, land use, tax and environmental protection in an effort to guide miners orderly exit .

Compared with China’s ICO ban in September, these proposed restrictions on mining failed to cause panic among the Chinese community. A Sichuan miner told news.bitcoin.com that he is confident that Chinese mining companies will remain in the leading position in the mining industry. “It’s too late for regulators to take moves. I feel that people are immune to regulations now.”

What do you think of the restrictions? Do you think the cryptocurrency industry will be reshaped? Leave your comments below.

Images via Shutterstock, Wechat channel and Sina Finance.

Need to calculate your bitcoin holdings? Check our tools section.