---
title: "Chinese Officials Are Investigating Crypto Mining Operations"
description: "Regulators in China's Sichuan province are gathering information on cryptocurrency mining, potentially leading to a full crackdown on the practice."
date: "2021-05-27"
modified: "2021-05-27"
authors:
  - name: "Victor Tangermann"
    job_title: "Senior Editor"
    link: "https://futurism.com/authors/victor"
url: "https://futurism.com/chinese-officials-investigating-crypto-mining-operations"
categories:
  - "Bitcoin"
  - "Blockchain"
  - "Cryptocurrency"
  - "Future Society"
tags:
  - "bitcoin"
  - "china"
  - "cryptocurrencies"
  - "elon musk"
  - "tesla"
---

# Chinese Officials Are Investigating Crypto Mining Operations

![Regulators in China's Sichuan province are gathering information on cryptocurrency mining, potentially leading to a full crackdown on the practice.](<https://futurism.com/wp-content/uploads/2021/05/chinese-officials-investigating-crypto-mining-operations.jpg>)
*\<em\>Image: \<a href="https://pixabay.com/photos/bitcoin-mining-processor-3369039/" target="\_blank"\>Image via Pixabay/Futurism\</a\>\</em\>*

Regulators in China's Sichuan province are gathering information on cryptocurrency mining, potentially leading to a full crackdown on the practice, [*Reuters* reports](<https://www.reuters.com./world/china/widening-chinese-bitcoin-crackdown-sichuan-probe-cryptomining-official-2021-05-27/>).

The news comes after the [Chinese government announced](<https://www.scmp.com/tech/policy/article/3134473/china-escalates-crackdown-bitcoin-mining-trading>) it will "crack down on bitcoin mining and trading behavior, and resolutely prevent the transfer of individual risks to the society."

It's yet another warning sign that Bitcoin could soon be on shaky grounds. With officials preparing for a crackdown, the effects on the digital token could be significant. China currently accounts for well over half of the global cryptocurrency mining supply.

Just last week, [China banned](<https://futurism.com/china-bans-banks-cryptocurrency>) any financial institutions and payment companies from doing any cryptocurrency-related business. As a result, Bitcoin plummeted to a four-month low of just $31,926, [according to Coindesk](<https://www.coindesk.com/price/bitcoin>) before bouncing back to roughly around $39,000, down from its lofty highs earlier this year.

While regulators in Sichuan are meeting with local power companies to gather information, *Reuters*' sources stopped short from claiming a crackdown was imminent. A seminar is scheduled next week for Sichuanese officials to discuss cryptomining.

Sichuan has plenty of hydropower available for mining businesses. It is the second biggest bitcoin mining province, according to *Reuters*, after Xinjiang.

The future of Bitcoin is more uncertain than it has ever been. Even Tesla CEO Elon Musk has [contributed to Bitcoin's recent fall](<https://futurism.com/the-byte/elon-musk-lost-20-billion-hosting-snl>) in recent months by publicly [flip-flopping on the token](<https://futurism.com/the-byte/bitcoin-value-elon-flip-flop>), first [accepting Bitcoin](<https://futurism.com/the-byte/tesla-plan-sell-cars-bitcoin>) as form of payment for Tesla vehicles in March, and then [reversing the decision](<https://futurism.com/the-byte/elon-musk-tesla-suspending-bitcoin>) just two months later.

Musk cited environmental concerns for his decision to ditch Bitcoin, though Tesla still holds considerable amounts of the cryptocurrency — and that may be affecting China's decision as well. The country is looking to drastically cut carbon emissions within the next decade.

By cracking down on cryptocurrency mining, a carbon-heavy practice, China could certainly make a dent. [According to a recent report by *CNN*](<https://www.cnn.com/2021/04/09/business/bitcoin-mining-emissions/index.html>), China could soon generate as much emissions through Bitcoin mining alone as some entire European countries.

An alternative explanation for China's crackdown on cryptomining, apart from its massive carbon footprint, could be its push to [establish a central bank digital currency](<https://futurism.com/peter-thiel-china-bitcoin-weapon-us>) (CBDC), a currency very unlike its blockchain-based counterparts.

Such a digital currency could give China's government unprecedented control over transactions, critics argue, which can't really be said about transactions made via a decentralized blockchain.

It's impossible to predict the outcome of China's plans to stop cryptomining businesses in their tracks — but investors will certainly be watching closely.

**READ MORE:** [In widening Chinese bitcoin crackdown, Sichuan to probe cryptomining - official](<https://www.reuters.com./world/china/widening-chinese-bitcoin-crackdown-sichuan-probe-cryptomining-official-2021-05-27/>) \[*Reuters*\]

**More on Bitcoin:** *[China Announces Huge Crackdown on Cryptocurrency Mining](<https://futurism.com/china-crackdown-cryptocurrency-mining>)*

## Author
I've been at Futurism since 2017, where my role has evolved to encompass design, writing, and increasingly editing. I've always been fascinated by space exploration and advanced transportation, which I've leaned into by interviewing luminaries in those fields while closely following the dimensions of policy and regulation that allow next-generation projects to succeed -- or, sometimes, to fail. I'm also keenly interested in the effects of generative AI on society, policies, and democratic institutions, as well as clean energy, physics and biology, and the vagaries of tech leadership. My work for Futurism has been cited by publications including Ars Technica, Gizmodo, PC Magazine, Jalopnik, Fox News, and the New York Post. I spent my childhood living in locations including Manila, the Philippines, and Geneva, Switzerland, attended McGill University, and now live in Toronto, Canada. Before Futurism I worked at AskMen and a small photography studio. In my free time, I'm an avid gardener, foodie, and craft beer lover, as well as a maker of artisanal hot pepper sauces. I have a magnificent dog named Freida.

### Author social links  
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