Chinese Ban on Bitcoin Mining Rumors Circulate, Amidst Official Document Releases

Ban on Bitcoin Mining

A state-owned electric utility in China is rebuffing rumors that bitcoin mining has been deemed illegal by the government. However, some are still fearful there will be a ban on Bitcoin mining.

Rumours spread in the past day – based on circulated document- revealing that the country’s State Grid was moving to ban bitcoin mining at a country level in the Sichuan province, an ostensibly notable development given the area’s abundant water supply for electricity generation and the fact that profit-chasing bitcoin miners are headquartered in the region.

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A translated document states that “bitcoin mining is an illegal activity. Each State Grid connected generator that is involved in powering Bitcoin mining is also regarded as an illegal practice, which shall prohibited.”

The document was quickly circulated and reported by Chinese local media which raised questions about whether such a decision may signal an administrative move against bitcoin mining.

According to Chinese business publication Caixin, local executives from the country branch confirmed the authenticity of the report but clarified it’s only an internal memo and some of the phrases were drafted incorrectly.

Further, the document comes from a country branch instead of a statewide level, thus diminishing the weight it might carry.

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