Summary
Following the regulatory policies targeting virtual currency mining in Xinjiang, Inner Mongolia, Qinghai, and Yunnan, Sichuan—China’s largest Bitcoin mining hub—has taken action. On June 18, 2021, Sichuan authorities officially issued a notice requiring power generation companies to conduct self-inspections and immediately cease supplying electricity to virtual currency mining projects, aligning with national cleanup requirements.
On June 19, shutdowns proceeded as planned. Market sentiment toward the cryptocurrency market, both short-term and long-term, hit a recent low. Industry experts attribute this downturn to two factors: the "growing pains" of policies aimed at eliminating speculative bubbles and the accelerated advancement of blockchain applications led by leading domestic blockchain enterprises like OKX Chain.
According to Wang Haifeng, a senior researcher at OKX Chain Research Institute, the global push for "carbon neutrality" has made the exit of energy-intensive mining a consensus among industry professionals—only a matter of time. This shift will objectively guide the digital currency and blockchain industries toward more rational and sustainable development.
More importantly, Bitcoin mining’s massive computational consumption stems from the Proof-of-Work (PoW) consensus mechanism. The "carbon neutrality" trend may spur further innovation in blockchain consensus mechanisms, propelling the technology into a new phase of development.
Blockchain’s Shift Toward Real-World Applications
Despite increasing regulatory scrutiny on cryptocurrencies, national policies have increasingly focused on leveraging blockchain technology to empower tangible industries. Since blockchain was elevated to a national strategic priority, it has frequently appeared in key national plans, including the New Infrastructure Initiative, the 14th Five-Year Plan, and macro-level documents from various government ministries.
At its core, blockchain is a critical component of next-generation information technology—a novel database software integrating distributed networks, encryption, smart contracts, and more. In China, blockchain applications have already demonstrated strong potential in traceability, supply chain management, legal evidence storage, government data sharing, and public services.
Wang Haifeng notes that blockchain’s role in supporting economic and social development has prompted the government to introduce policies fostering the growth of competitive industries.
OKX Chain’s Contributions to Blockchain Innovation
As a globally leading blockchain industry group, OKX Chain has been dedicated to blockchain R&D and commercialization since its founding in 2013. The company is one of China’s earliest blockchain enterprises and a recognized pioneer in global blockchain development.
In core technology exploration, OKX Chain has made significant breakthroughs in scalability, achieving world-leading advancements in proprietary data layering and multi-chain parallel development. These innovations reduce blockchain data transmission costs and enhance development efficiency.
Beyond R&D, OKX Chain has invested heavily in ecosystem development, supporting blockchain projects through industry capital, fund initiatives, and financing services.
The Road Ahead: Blockchain’s Expansion into Key Sectors
Recently, the Guiding Opinions on Accelerating Blockchain Technology Application and Industrial Development—jointly issued by the Ministry of Industry and Information Technology and the Cyberspace Administration of China—set a goal for China’s blockchain industry to reach world-class standards by 2025. The plan emphasizes applications in product traceability, data exchange, and supply chain management, aiming to create scenario-based models for broader adoption.
As Wang Haifeng stated, "History has repeatedly proven the validity of blockchain’s current development path. With national support, technology will ultimately return to tangible industries. As innovators, OKX Chain is accelerating progress in chain security, industrial investment, talent development, and R&D. The era of widespread blockchain applications is not far off."
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FAQs
1. Why is China shutting down Bitcoin mining operations?
China’s crackdown aligns with its "carbon neutrality" goals, targeting energy-intensive mining to promote sustainable blockchain development.
2. How will blockchain evolve after mining restrictions?
The industry is expected to shift toward more energy-efficient consensus mechanisms and real-world applications, reducing reliance on PoW-based mining.
3. What are OKX Chain’s key technological achievements?
OKX Chain has pioneered data layering and multi-chain parallel development, significantly improving blockchain scalability and efficiency.
4. Where is blockchain making the biggest impact today?
Current applications span supply chains, legal evidence, government data sharing, and anti-counterfeiting solutions.
5. What’s next for blockchain in China?
By 2025, China aims to lead in blockchain innovation, with expanded use cases across industries like logistics, finance, and public services.
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