China’s Qinghai Province Shuts Down Crypto Mines

Bitcoin mines in China use a combination of coal and hydroelectric energy.

article-image

Source: Shutterstock

share
  • China’s Qinghai province has issued a new ban on cryptocurrency mining operations, the government announced Wednesday
  • The local government cited concerns over energy usage associated with crypto mining

China’s Qinghai province has issued a new ban on cryptocurrency mining operations, according to a government document released Wednesday.

“The Qinghai government will prohibit any local authorities from setting up or permitting any new crypto mining projects. It will also close down all the current crypto mining operations in the province,” the document from the Qinghai Industry and Information Technology Department said. 

The local government cited concerns over energy usage associated with crypto mining. Bitcoin mines in China use a combination of coal and hydroelectric energy. The use of coal specifically does not align with China’s broader goal of moving toward a more carbon neutral nation. 

“China’s move is not surprising given its history of crypto repudiation,” said Haohan Xu, CEO of Apifiny. “The news also reflects the recent expansion of mining to other countries like the United States, Russia, Kazakhstan and Malaysia — and the increased throughput of existing miners outside of China. Some trading platforms are even starting to mine Bitcoin to help increase liquidity for their traders and exchange partners.” 

One of the major governing bodies in China, the State Council of China, put crypto miners on notice in May when it directed local governments to restrict crypto-related activities, including mining and trading. 

China has recently been taking steps to protect businesses from inflation. Because the country is the largest manufacturer and exporter in the world, by far, price hikes in China are felt globally. 

Officials have promised to crack down on hoarding and price gouging and have urged coal and steel producers to keep prices where they are.

A similar ban on mining is in place in Iran where President Hassan Rouhani said “The mining of cryptocurrencies is strictly prohibited until the end of summer, and the Ministries of Communication and Information Technology and Energy are responsible for cutting off power to these centres.” The ban will last until September due to hot weather months.

Tags

Decoding crypto and the markets. Daily, with Byron Gilliam.

Upcoming Events

Javits Center North | 445 11th Ave

Tues - Thurs, March 24 - 26, 2026

Blockworks’ Digital Asset Summit (DAS) will feature conversations between the builders, allocators, and legislators who will shape the trajectory of the digital asset ecosystem in the US and abroad.

Old Billingsgate

Mon - Wed, October 13 - 15, 2025

Blockworks’ Digital Asset Summit (DAS) will feature conversations between the builders, allocators, and legislators who will shape the trajectory of the digital asset ecosystem in the US and abroad.

recent research

Unlocked by Template (1).jpg

Research

As AI supercharges surveillance, privacy becomes a prerequisite and the winning stack will combine confidentiality with selective disclosure. Zcash’s Tachyon, composable standards on Ethereum/Solana, and compliance-aware pools aim to make private rails the new norm.

article-image

Pipe’s testnet has delivered 60+ PB of data across ~290,000 Point of Presence (PoP) nodes

article-image

375ai will hold TGE at the end of the month, CEO Harry Dewhirst told Blockworks

article-image

Block’s subsidiary adds direct Bitcoin integration and AI-powered ordering tools for small businesses seeking streamlined transactions

by Blockworks /
article-image

The deal integrates Dinero’s staking suite into Plume’s real-world asset platform as it gains SEC transfer agent status

by Blockworks /
article-image

The state’s decision opens staking access to New Yorkers, signaling a regulatory shift toward broader crypto participation

by Blockworks /
article-image

The startup says it aims to rival Stripe and Worldpay by using stablecoins to speed merchant settlements from days to seconds

by Blockworks /