Local authorities in Buddha County, located in China's Sichuan province, have taken decisive action against cryptocurrency mining. The county government announced a comprehensive ban on all mining-related operations. The decision is in line with broader national policy aimed at phasing out outdated, energy-intensive production practices.
Officials framed the move as part of efforts to maintain financial order, reduce systemic risk and protect regional resources. As a result, the announcement will put new pressure on remaining mining sites in rural areas that previously attracted operators due to their low costs.
In addition to addressing economic concerns, the notice emphasized social stability and regulatory compliance. The authorities indicated that the mining activities no longer fit within the framework of acceptable industry.
Therefore, the county will no longer tolerate operations related to the production of digital assets, regardless of size or location. This policy is effective immediately and leaves no grace period for existing operators.
Enforcement actions and on-site coordination
County officials outlined strict enforcement procedures to ensure prompt compliance. The township government will work closely with power and telecommunications companies.
In addition, regulators conduct targeted inspections to uncover hidden or unauthorized mining facilities. If violations are found, electricity supply and internet services may be immediately suspended. As a result, businesses are at risk of significant disruption to both their business operations and their personal credit standing.
In addition, local development authorities will oversee reporting and follow-up activities. Residents were encouraged to report suspicious activity through an official hotline.
Importantly, this approach extends enforcement beyond government agencies by involving the public. Officials believe this shared responsibility model will accelerate detection and deterrence. Therefore, the county expects faster elimination of hidden mining activities across industrial and residential areas.
PARTICIPANT LEGAL AND FINANCIAL RISKS
The notice also warned of significant legal ramifications related to involvement in the mine. Authorities classified mining-related operations as illegal financial activities.
As a result, participants may face loan cancellation, legal liability, and administrative penalties. Party disciplinary and administrative measures may apply to public officials who participate in or provide protection.
Additionally, the county emphasized that private investment agreements related to virtual currencies lack legal protection. Any losses arising from such investments remain the sole responsibility of the individual.
Additionally, authorities aim to send a clear signal to discourage speculative behavior related to digital assets. The county is trying to limit future mining interests by increasing personal liability.
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