Authorities the Xinjiang Uyghur Autonomous region of China are going to the end of the summer to close illegal centers of bitcoin mining in the region.

Local media has published the order of the Commission of economy and information of Xinjiang (EIC), which ordered the local utility company to close illegal mining of cryptocurrencies and to report on measures taken to August 30.

Illegal mining activities document related enterprises using electricity without formal contracts with utility companies. Also they have assigned to them are not registered as economic entities, who were not on the tax account and violating other rules of business.

“Local public agencies and companies will be prosecuted if they fail to close illegal mining operations of bitcoin,” wrote the EIC.

As noted by CoinDesk, citing a businessman with interest in several local mining companies, the decision of the authorities of the region is already impacting the business.

“I have two partners in the region: one 18 thousands of miners, the second — 40 thousand. In recent days, they prayed, urging me to search for the platform in the US and Canada. But, for me — first I have to get electricity. And even if it had, we must build a farm from scratch,” explained the technical Director of the canadian blockchain startup.

The authorities of Xinjiang in January issued a decree obliging the crypto currency miners monthly report on the status of their business. This happened against the backdrop of recent information on the intention of the authorities to gradually eliminate the policy of providing favorable conditions for this business in the electricity sector, taxes and land use.

In addition, the concern of the Chinese government caused the growth of electricity consumption of the new industry, which has become a cause of communal problems.

We will remind that the authorities of the miners of the regions as the canadian provinces Quebec and new York state in the United States, is also concerned about the energy consumption of enterprises for mining cryptocurrency.