In today's digital age, virtual currency mining has become one of the hot topics in the financial field. However, the Sichuan Financial Office recently issued a request requiring companies to withdraw from virtual currency mining. This move has attracted widespread attention and triggered people's thinking on financial supervision and innovation. This article will conduct an in-depth discussion on this topic and explore the motivations, influences and future development trends behind it.

In the context of today's rapid development of the digital economy, virtual currency mining, as a new financial activity, has attracted the attention of many companies. However, the risks and challenges that come with it are becoming increasingly prominent. The requirements of the Sichuan Financial Office are aimed at regulating the order of the financial market, protecting the interests of investors, and maintaining financial stability. This move not only reflects the responsibility of the regulatory authorities, but also demonstrates the innovation and forward-looking nature of financial supervision.

First of all, the rapid development of virtual currency mining has brought a certain impact to the financial market. Many companies have taken a fancy to the high returns and low costs of virtual currency mining and have joined it. However, due to the uncertainty and volatility of the virtual currency market, investment risks are gradually increasing. The measures taken by the Sichuan Financial Office will help curb the craze of virtual currency mining, guide enterprises to invest rationally, reduce financial risks, and promote the healthy development of the financial market.

Secondly, the Sichuan Financial Office requires companies to withdraw from virtual currency mining, which also reflects the regulatory authorities’ cautious attitude towards financial innovation. As a form of financial innovation, virtual currency mining has certain potential and prospects, but there are also many problems and hidden dangers. Regulatory authorities need to conduct prudent supervision, prevent financial risks, and ensure the stable operation of the financial system. Through this initiative, the Sichuan Financial Office has released regulatory signals to the market, guiding financial institutions to strengthen internal management, standardize financial businesses, and promote financial innovation towards a healthier and more sustainable development path.

Furthermore, the Sichuan Financial Office requires companies to withdraw from virtual currency mining, which will also have a profound impact on the financial industry. The financial industry is an important pillar of the national economy, and the tightness of financial supervision is directly related to the stability and development of the entire economy. By regulating virtual currency mining, regulatory authorities can help curb financial chaos, improve the transparency and standardization of the financial market, and enhance the risk prevention capabilities of the financial system. This will lay a solid foundation for the healthy development of the financial industry and inject strong impetus into sustainable economic growth.

Finally, the Sichuan Financial Office requires companies to withdraw from virtual currency mining, which is not only a warning to the financial market, but also a sublimation of financial supervision. Financial supervision needs to keep pace with the times, continue to innovate, and adapt to the development and changes of the financial market. Only by strengthening supervision and standardizing market order can we effectively prevent financial risks, protect the rights and interests of investors, and promote the healthy development of the financial industry. This move by the Sichuan Financial Office has set a new example for financial supervision and pointed out the development direction for financial innovation.

In short, the Sichuan Financial Office requires companies to withdraw from virtual currency mining, which is an important measure for financial supervision and an important guide for the financial market. This measure will help standardize the order of the financial market, reduce financial risks, and promote the healthy development of the financial industry. In future development, regulatory authorities and financial institutions need to work together to strengthen cooperation, jointly promote the construction of the financial supervision system, and contribute to the sustainable development of the financial industry. It is hoped that financial supervision will move forward in innovation and inject new vitality and impetus into economic and social development.

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Wushuo Blockchain exclusively learned that on April 29, the Sichuan Provincial Financial Leading Group Office issued the “Notice on Guiding Enterprises to Exit Virtual Currency “Mining” Activities in an Orderly manner.” This notice is currently being implemented in various counties and cities. Previously, local governments in Sichuan's marginal poverty-stricken areas tried to use the mining industry to absorb abandoned water and electricity to combat the economic recession caused by the epidemic. This notice will hinder local governments’ support for the “mining” industry.

The notice stated: Due to the recent rebound in foreign virtual currency transaction prices, some companies, under the banner of "blockchain" or high-tech industries, have gone to areas with abundant wind power and hydropower to engage in "mining" activities. At present, some companies publicize that virtual currency "mining" activities fall within the scope of the state's encouragement of the development of the blockchain industry, attracting investors to follow suit, and lurking potential risks such as investment speculation, illegal fund-raising, pyramid schemes and fraud.

Wu said that the notice obtained by Blockchain requires multiple measures to be taken to promote companies to speed up the withdrawal of "mining" activities. At present, the policy guidance of various ministries and commissions on virtual currency "mining" activities is highly consistent, and the work requirements for guiding exit have not changed. The province has issued two notices in the early stage, requiring relevant cities (states) to actively guide enterprises within their jurisdiction to withdraw from "mining" activities in an orderly manner.

The notice requires that the rectification offices of various cities (prefectures), especially in areas with abundant hydropower resources such as Garze, Ya'an, Leshan, Aba, and Liangshan, strengthen risk investigation, stop investment promotion activities of suspected "mining" companies, and actively coordinate development, reform, economic development, and economic development. The credit, market supervision, taxation and other departments will comprehensively take mandatory measures such as power supply, electricity price, land, taxation and environmental protection to promote the orderly exit of existing enterprises from mining activities.

Wu Shuo Blockchain learned that in mid-May, the notice had been issued to all cities and counties, and corresponding documents had also been issued. Muli County issued the "Notice on Reporting Virtual Currency "Mining" Activities on May 21. The notice stated that from the date of issuance of this notice, all hydropower and power generation companies in our county will immediately stop virtual currency "mining" No new virtual currency "mining" projects are allowed in the investment promotion activities. Otherwise, our bureau will recommend that the county people's government investigate and deal with illegal construction projects and take administrative measures such as bans, fines, and orders to dismantle them until they are handed over to the People's Court for enforcement.

This incident once again highlighted the different opinions between financial managers and industry managers within the government. The notice also deliberately emphasized that “the policy guidance of various ministries and commissions on virtual currency “mining” activities is highly consistent, and the work requirements for guiding exit have not changed.” It is suspected that it has received pressure from a higher level.

At the central level, on January 2, 2018, the leading group of the Internet Financial Risk Special Rectification Office issued an internal document requiring all localities to guide enterprises within their jurisdiction to exit the "mining" business in an orderly manner and to report work progress regularly. The document pointed out that the mining industry wasted resources and contributed to the speculation of virtual currencies. The National Development and Reform Commission’s 2019 Draft Guidance Catalog for Industrial Structural Adjustment once listed cryptocurrency mining as a phased-out industry, but this entry was deleted from the text published on November 6. The Energy Bureau is under the jurisdiction of the National Development and Reform Commission, and it is reported that insiders have studied the use of mining to consume abandoned water and electricity.

At the local level, it is reported that in March Sichuan was studying how to deal with the economic recession caused by the epidemic, and had studied the economic promotion of the mining industry. This may be the reason why Ya'an, Ganzi and other places subsequently issued documents to promote the development of blockchain. In April, Ya'an officially issued the "Implementation Opinions on Building a Hydropower Consumption Demonstration Zone to Support the Development of the Blockchain Industry", and Garze Prefecture also held the highest-level "Blockchain Industry Development Symposium". Sichuan recently announced the first batch of "Hydropower Consumption Demonstration Enterprises", and among the 99 companies entered, there are multiple mines. This notice from the Sichuan Provincial Finance Office will hinder local government’s support for the mining industry.

The "regions with abundant hydropower resources such as Ganzi, Ya'an, Leshan, Aba, and Liangshan" listed by the Financial Office are the most economically backward areas in Sichuan, suffering from financial difficulties and debts. They have abundant hydropower resources but cannot use them. "Mining" It has almost become the only industry that does not cause pollution and can generate profits.

Premier Li Keqiang emphasized that to coordinate the promotion of epidemic prevention and control and economic and social development, we must now more specifically intensify efforts to stabilize employment, stabilize finance, stabilize foreign trade, stabilize foreign investment, stabilize investment, and stabilize expectations, and more effectively respond to the impact of the epidemic. impact on economic performance. The first of these is to stabilize employment. Wu said that mandatory requirements for mines to withdraw will not only seriously affect local finances, but also seriously affect the employment of employees in local mining, power, energy, infrastructure and other departments after the epidemic.

“Mining” itself is simply the process of producing Bitcoins. The central bank pointed out in 2013 that Bitcoin is a virtual commodity, and Bitcoin trading is a commodity buying and selling behavior on the Internet. Ordinary people have the freedom to participate at their own risk. Therefore, mining is not illegal under current regulations, and the central government has repeatedly emphasized that in the economic field, "it can be done without prohibition by law."

In the future, Sichuan's mines in the hydropower consumption demonstration zone will become "regular troops" to a certain extent, and mines that provide direct power supply will be subject to more stringent inspections. But for this year, the mines in the hydropower consumption demonstration area have not been completed so quickly, and have been put into operation on a large scale and used electricity. All in all, due to the Bitcoin halving, large-scale power outages, swings in government policies, and increased inspections brought about by compliance, miners in this year's wet season may not have an easy life.