With the bear market in the currency circle, the project party has experienced a round of "cleaning", and investors have become more cautious. There are fewer coin speculators, and more technology-focused ones. As an industry foundation, the development of the mining industry in the cold winter is not very optimistic. Many people left the market, and the mining machine giant BTC also performed poorly. According to a Cointelegraph report in August, Bitmain lost $500 million in three months. Many small mines are poorly run, and government regulation is partly hastening the departure of people who work in these operations.
to reportto reportRecently, mines in Guizhou and Xinjiang have been required by relevant departments to conduct power outages for rectification. The rectification began on November 5, and relevant government departments have carried out joint law enforcement actions against local mines.
The government inspected the mine’s taxation, capital transactions, and customer information, required the mine to register under the real-name system, and required the local mine to sign a guarantee letter, which clearly stated the requirements: “According to the needs of the public security department’s network information security work, in the next period of time Our company will implement higher standards for the company's business real-name system according to the work needs of the public security department. For customers who have not completed the latest standard real-name system, the data center will have to suspend related work such as reinstallation, restart, moving in and out."
According to the media’s interviews with people familiar with the situation, the scope of power outages and rectification of mines powered by the State Grid is still relatively small. At present, the Xinjiang Corps has also issued notices to relocate or limit power to the mines. The mine owner believes that this rectification may affect a number of mines in the future.
Mining has been criticized for its consumption of power resources, and at the same time, mining requires high costs. In the case of the bear market itself with small profits, the government's strengthened supervision has made it even worse for small-scale mines, making it difficult to operate.
In January of this year, the Office of the Leading Group for the Special Rectification of Internet Financial Risks issued documents to all localities, requesting to actively guide enterprises within their jurisdiction to withdraw from the Bitcoin mining business in an orderly manner. In the middle and late November of last year, the Mutual Finance Rectification Office held a meeting to discuss the issue of guiding the exit of mines.
to reportto report, Some mines are brought in by the local government to attract investment. They have contracts and pay taxes for the local government at the same time. Therefore, the government and the mines have no intention of moving away for the time being. Blockchain will not drive away mining companies.”
Whether the current management and control will be gradually promoted, the impact on large mining pools is still unclear. But what is certain is that under the worrying market situation, strict supervision will inevitably have a more adverse impact on the development of small mining pools.
