As confirmed by BBTC news portal and Colin Wu, top Chinese blockchain journalist, OKEx, Huobi, and Binance are no longer visible in the search engine results of Sogou and Baidu.
Wu blockchain Tweet. Source: Twitter
The Chinese version of Twitter (Weibo) has removed search results for these exchanges. These moves confirm that Chinese authorities are not yet done in clamping down on crypto activities in the country. Also, a search for any of these three top exchanges on desktop or mobile version of Baidu doesn’t display any search result. It is the first known time that Baidu would be involved in crypto-related search keywords.
Xinjiang Province Orders Shut Down of Crypto Mining Operations
In a similar vein, various Chinese provinces are also meting out various crypto sanctions. The latest to join these efforts is the Xinjiang province which has informed all crypto miners to stop their operations. According to a press release by Xinjiang’s Changji hui autonomous perfecture to those in charge of the Zhundong Economic-Technological Development Park, there should be no crypto operations by 2 pm china time today, June 9, 2021.
The 16,000 square km park is home to various coal-supported power plants, industrial factories, and other coal production companies. Its high capacity of fossil fuel energy also makes it home to the most extensive bitcoin mining facilities in China.
The result of the China state council meeting last month regarding bitcoin trading and mining shutdown is the presumed cause for this new notice and action. Even though the exact amount of energy used for crypto mining operations within the Changji Perfecture is unknown, Xinjiang’s Zhundong Development Park is reputed to be a leading bitcoin mining center with high consumption of fossil fuel energy.
However, per Wu blockchain, some miners have not yet heeded this new directive. It would be fascinating to watch how events unfold.
Effect on Hash Rate
Crypto analysts predict that Xinjiang’s new actions will have a more severe effect on bitcoin’s hash rate than the actions taken on crypto in Inner Mongolia. While crypto operations in Xinjiang and Inner Mongolia depend heavily on fossil fuel energy, the former has consistently exceeded that of the latter. Also, Inner Mongolia’s bitcoin mining operations have been in a gradual phase-out for over three months. Since May 29, 2021, when the last mining difficulty adjustment occurred, the 7-day bitcoin average computing power has increased slightly to 155 exahashes per second (EH/s).
Bitcoin Hash Rate. Source: Coinmetrics
Also, authorities of another top bitcoin mining center, Sichuan held a discussion last week to determine the effect of no bitcoin mining operations on their hydropower economy – the Sichuan province is famous for providing cheap hydroelectricity. However, the discussion didn’t yield any immediate plan.
A total end to bitcoin mining operations in China would pose a challenge. Still, it would welcome bitcoin miners in other regions because Chinese crypto business firms are already seeking alternatives outside of China.