Crypto-related entrepreneurs and enthusiasts in Vietnam have witnessed a significant uptick in demand for crypto mining rigs in the country, local news agency VnExpress reported on Monday.
Quang Thuan, owner of a chain store selling cryptocurrency miners across Ho Chi Minh City, said that the company’s sales have tripled in early September over the previous month. He noted that the mining rig market in Vietnam was down before Bitcoin surged back above $50,000 in mid-August.
The rising demand has triggered notable growth in crypto miners’ prices as some devices are now priced at 5 million Vietnamese dongs ($220) higher than in mid-August, according to local crypto mining enthusiast Ngoc Van. The best-selling miners based on graphics processing units produced by AMD or Nvidia now reportedly cost between $3,500 and $4,400, he added.
According to Le Hung, the administrator of a local crypto mining community with nearly 80,000 members, the crypto mining market in Vietnam has heated up due to the renewed crypto rally and the ongoing COVID-19 pandemic. “First, Bitcoin, Ether and other cryptocurrencies have simultaneously seen price hikes, and miners have started to make profits. Second, the pandemic has prolonged, reducing investment options, and so more people have opted for coin mining,” he said.
The Vietnamese government has maintained a skeptical stance on the cryptocurrency industry, with the Ministry of Finance warning the public earlier this year that crypto is unregulated in the country. After banning cryptocurrency as a means of payment back in 2018, Vietnamese authorities have been urging the population to avoid crypto.
Despite hesitation from the government, Vietnam had the highest cryptocurrency adoption rate in August among 26 other countries. The country previously ranked 13th in realized Bitcoin gains for 2020 despite having only the 53rd largest economy based on gross domestic product
Crypto mining ban expands to Hebei Province
China has taken over 90 percent of crypto mining farms since 2020.
• The China government advances with developing the Yuancoin.
While decentralized currencies are accepted in various countries of the world, it seems China’s regulatory policies will continue to remain in place and eve was stronger, especially with crypto mining. The national authority clarified that its stance towards crypto-mining has not changed, so it is still prohibited.
Since Tuesday, as reported by local media, a technology agency in Hebei, a province in China, has been working with regulators to expose offenders. The agency will search everywhere for possible crypto mining farms that operate in the country’s interior.
Regulations against crypto mining return to Chinese provinces
Since last year, long before the Bitcoin price hit its all-time high, the Chinese government has sought to ban the crypto market. The authorities regulated decentralized trading platforms, and then they were destroying every farm dedicated to crypto mining. The bans began with Beijing, the capital city, and then spread to remote provinces of China, such as Hebei.
The security and technology agency within the province in China must inform regulators at the end of the month that no crypto-mining farms operate. These agents have a great job to solve because they have to look at which areas consume the most energy because a BTC farm may be located there.
According to regulators in China, crypto mining is dangerous because it consumes a lot of energy. The authority also supports their actions by saying that the cryptocurrencies mining affects the “0 Carbon” plan they want to complete in 2021.
Crypto miners seek a new country to work in
Crypto mining in China has had tough weeks as regulators have tried to shut down farms without concrete vision. Due to these regulatory operations, the Bitcoin price dropped in May, losing over 50 percent of its capital.
The companies dedicated to this cryptocurrency mining work in China have had to close their doors and sell the machines to avoid losing a lot of money on the investment. However, other crypto-mining companies moved their operations to other countries in Asia.
The most famous crypto mining companies in China such as Houbi, HashCow, and BTC.TOP was the first to disappear after the announcement by regulators in May. Other exchanges offering various crypto services within the country also had to cease operations because of the crackdowns.
There are practically no crypto-mining farms in China, allowing the popular government to experiment with the virtual market. Everything indicates that the regulators achieved their mission of running to the competition to tackle the crypto ecosystem under their own rules. In June, the China government announced that it would launch the YuanCoin, a stablecoin backed by blockchain technology.
Illegal crypto mining not the cause of power shortages in Iran, ministry says
Iran’s Ministry of Industry, Mine and Trade reportedly dismissed claims by leading power company Tavanir that blamed illegal cryptocurrency miners for the ongoing power shortages in the country.
According to a report by the Financial Tribune, Alireza Hadi, the ministry’s director of investment and planning, said that the figures announced by Tavanir “seem to be highly exaggerated.” Hadi questioned Tavanir’s claims that illegal mining activities consume 2,000 megawatts of power. “This amount would equal power used by 3 million pieces of hardware,” he said.
While mining cryptocurrency has been legalized by the Iranian government, Tavanir blames unregistered miners for nationwide power shortages. In August 2021, Tavanir spokesperson Rajabi Mashhadi said:
“Unauthorized miners are the main culprits behind the power outages in recent months. We would have had 80% less blackouts if miners had halted their activities.”
Tavanir also claims to have shut down operations for over 5,000 mining farms in addition to confiscating 213,000 unauthorized mining hardware that was capable of consuming 850 megawatts.
To date, Iran’s Ministry of Industry, Mine and Trade has authorized 56 mining farms that collectively consume 400 megawatts, according to Tanavir’s estimate. In 2020, the ministry authorized and registered 126,000 pieces of mining equipment, which consumed 195 megawatts when running at full capacity.
Last year, whistleblowers helped Tavanir close down 1,100 crypto mining farms that allegedly did not have proper licenses.
Iranian citizens who help the authorities track down illegal miners were awarded 100 million rials ($480) as a bounty. Although Iran has approved registered businesses to conduct mining operations, authorities had warned crypto miners to register their business and equipment before the end of 2020.
China Bans Hydropower Stations from Supplying Cryptocurrency Mining Companies
China’s Yingjiang County has prohibited hydropower stations from supplying cryptocurrency mining companies
As part of the cryptocurrency supervisory campaign in China, the People’s Government Office of Yingjiang County, Yunnan Province, has required all hydropower stations to stop providing illegal power supplies to cryptocurrency mining companies. If they do not voluntarily do so, they will be forced to, IT House reports.
Another addition to the notice was that townships are obligated to strengthen supervision of major data plants related to or part of hydropower stations. The County Development and Reform Bureau departments are ruled to increase legal efforts in order to eliminate the “illegal power” supply to crypto mining companies.
Previously, Anhui Province, Sichuan Province, Inner Mongolia Autonomous Region and other municipalities have been obligated to clean up and rectify the power consumption of cryptocurrency mining companies.
Yunnan Province Energy Bureau previously stated that it will investigate and take legal action against any Bitcoin mining company that relies on power generation companies, using unauthorized electricity sources or utilizing power for additional hidden profit-making.