It is reported that Anhui will strictly control new high-energy and high-power projects, and comprehensively clean up and close virtual currency mining projects built under various names. So far, Anhui has become the sixth province in China to clean up virtual currency mining projects.

On May 21 this year, the Financial Stability and Development Committee of The State Council held its 51st meeting to crack down on bitcoin mining and trading and resolutely prevent personal risks from being passed on to the social sector.

In response to why to crack down on Bitcoin mining and trading behavior, Fan Yifei, vice president of the Central bank, pointed out at a new briefing on July 8 that personal digital currencies, including Bitcoin and various stable currencies, have become speculative tools, payment tools for money laundering and illegal economic activities, and there are potential risks that threaten financial security and social stability

According to public reports, virtual currency mining is generally concentrated in Xinjiang and Inner Mongolia, which are rich in thermal power generation, and Yunnan, Sichuan and Guizhou, which are rich in hydropower generation.

According to incomplete statistics, six provinces, including Inner Mongolia, Yunnan, Xinjiang, Qinghai, Sichuan and Anhui, have shut down virtual currency mining projects so far.

Among these factors, a series of cleanup efforts in Inner Mongolia has attracted much attention. On February 25, the Inner Mongolia Development and Reform Commission issued the "Several Safeguard Measures to Ensure the completion of the 14th Five-Year Energy Consumption dual control target task (draft for comments)", proposing to comprehensively clean up and close the virtual currency mining project, and withdraw all by the end of April 2021, in addition, new virtual currency mining projects are prohibited. On May 18, the Inner Mongolia Development and Reform Commission announced the establishment of a virtual currency mining enterprise reporting platform. On May 25, the Inner Mongolia Development and Reform Commission proposed different punishment strategies based on eight categories of objects.

Pan Helin, executive dean and professor of the Digital Economy Research Institute of Zhongnan University of Economics and Law, told the New Zealand Jingwei reporter that there are two main reasons for the closure of virtual currency mining projects around the country: First, the state has been qualitative on virtual cryptocurrency, comprehensively reorganize virtual currency in the country, and respond to the national call to govern virtual currency mining projects; Second, all localities have carbon emission tasks, under the pressure of energy conservation and emission reduction in the future, mining consumes a lot of energy, which is not conducive to the local promotion of energy conservation and emission reduction, so the excavation has become inevitable.

Pan and Lin predicted that virtual currency mining projects will be shut down nationwide in the future. Now that it has been outlawed and cracked down on, it will eventually spread across the country.

With the decentralization of various policies, it is currently unrealistic to mine in the country, and it is necessary to "flip over the wall" to carry out virtual currency transactions, which requires faster and stronger network equipment support, because the operation delay of one second, may be tens of thousands or even hundreds of thousands of losses.

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