Sichuan Ganzi shuts down Bitcoin mining farms? Officials say they are only collecting opinions and will not implement a one-size-fits-all approach

Upstream News reporter Hu Lei

Source: Upstream News

Starting from December 24, a symposium notice from the Office of the People's Government of Ganzi Tibetan Autonomous Prefecture, Sichuan Province, attracted attention in the Bitcoin industry, and "complete closure of Bitcoin mines" became the keyword.

On December 26, a reporter from Upstream News learned from the Economic and Information Department of Ganzi Prefecture that the relevant meeting originally scheduled for December 25 has been postponed to the 27th. The purpose of the meeting is only to collect opinions from all parties on the cleanup of Bitcoin mines, "definitely not a one-size-fits-all shutdown."

The abundant hydropower resources in Ganzi Prefecture have made it a Bitcoin mining site with huge electricity consumption, and it was once awarded the title of "Mining Capital of the World".

▲The "Bitcoin Mine Cleanup Work Symposium Notice" in Ganzi Prefecture has attracted widespread attention. Image from the Internet

Previously, Upstream News reported many times that since 2018, Ganzi Prefecture has regulated Bitcoin mines in the name of clearing unapproved illegal buildings and controlling noise pollution. The leader in charge of the Kangding Municipal Government once told Upstream News reporters that Bitcoin mining machines do not have to pay any taxes or other fees in the local area, but a large number of external machine maintenance personnel, random wires in the mine, and the noise and heat generated by the mining machines have had a huge impact on public security, fire protection, and the environment.

The local people in Ganzi believe that apart from consuming local electricity, Bitcoin mines have not made any economic contributions such as taxes and employment, but have instead brought certain security risks.

On May 28 this year, the relevant person in charge of the Kangding Municipal Bureau of Economics and Information Technology also said in an interview with Sichuan media that Ganzi Prefecture does not allow Bitcoin mining. "If Bitcoin is included in investment promotion, it is not allowed. We also need to conduct data investigation on big data projects before making a decision."

Currently, Ganzi Prefecture is in the dry season and electricity resources are relatively tight. Many Bitcoin companies have moved out of Ganzi Prefecture and moved to areas where thermal power is concentrated.

However, a work information released on the Ganzi Prefecture government website on December 24 attracted attention: the news release "Our Prefecture Actively Prepares to Meet the Peak Winter Power Supply" issued by the Ganzi Prefecture Government Office clearly stated that "the "Ganzi Prefecture Work Plan for Cleaning Up and Rectifying Bitcoin Mines" has been issued to standardize the direct power supply behavior of power companies." What exactly the content of the work plan is has attracted attention from many parties.

▲The Bitcoin mine is located in the mountains of the western Sichuan Plateau and built along the river. Rows of industrial exhaust fans are its symbol. Photo/Upstream News reporter Hu Lei

At the same time, a meeting notice from the Ganzi Prefecture Government Office pushed the industry's concerns to a peak. The online meeting notice showed that a "Seminar on the Cleanup of Bitcoin Mines in the Prefecture" would be held at 9 a.m. on December 25 in the sixth-floor conference room of the Ganzi Prefecture Government to listen to opinions and suggestions on the cleanup of Bitcoin mines in Ganzi Prefecture. Participants included the leaders in charge of the Ganzi government and the heads of the departments in charge. Several Ganzi Bitcoin mine operators were also required to attend. Some commentators believed that this was a signal that Ganzi Prefecture would completely clear out Bitcoin mines.

Upstream News reporters learned that the "issuance of the Ganzi Prefecture Work Plan for Cleaning Up and Rectifying Bitcoin Mines" is part of Ganzi Prefecture's work to ensure electricity supply during the peak winter season, with the focus on ensuring electricity for people's livelihood.

On December 26, a staff member of Ganzi Prefecture Economic and Information Bureau, who was in charge of the "Seminar on the Cleanup of Bitcoin Mines in the Prefecture", told Upstream News that the seminar originally scheduled for December 25 has been postponed to December 27. As for whether the Bitcoin mines in Ganzi Prefecture will be completely cleared, the staff member said that there is no "complete clearance of mines" at present, and the relevant seminar is only to listen to the opinions of all parties involved, including hydropower companies and Bitcoin mine owners, "It is definitely not a one-size-fits-all closure."