Chinese social media giant, Weibo blocked the official accounts of three major Crypto Exchanges, namely Huobi, Ouyi, and Binance on the March 11, 2021, raising fears of a potential clampdown on cryptocurrency, including a possible ban in some provinces. China has already stopped digital mining in Inner Mongolia due to the excessive power consumption.
The home page of the banned Weibo accounts shows “This account is now unavailable for viewing due to complaints about violations of laws and regulations and the relevant provisions of the Weibo Community Convention.”
China is not the only nation with power problems, earlier Iran also had to ask Chinese miners in the country to reduce power consumption as some cities went into blackouts. Coin mining operations have emerged where power is the cheapest and Iran sells power for 0.005 cents per kWh. China is currently 0.084 cents per kWh which is why many have moved to lower cost nations.
Remittances of around 800,000 Kyrgyz migrants working in Russia represent 40% of Kyrgyzstan’s GDP. Kyrgyzstan is more expensive at 0.010 cents per kWh but there are a lot of Chinese mining farms there was well. Kyrgyzstan borders China.
Prices have been insane for some time now and China has been forced to take steps to cool the markets. It is not yet clear if more steps towards regulation will be taken. The power consumption from coin mining has been staggering as countless thousands of video cards are running 24/7.
Delivering the Government Work Report at the annual session of the National People’s Congress on Friday, Premier Li Keqiang said China has set the reduction of energy consumption per unit of GDP by about 3 percent as one of its main targets for 2021. This probably was the trigger for regulating digital coins with today’s actions. China produces most of its electric power with coal which means digital mining which has a poor energy profile is also wasteful.