The notice issued by Butuo County, Sichuan, China, prohibits the conduct of virtual currency mining activities

The Liangshan Yi Autonomous Prefecture of Sichuan Province, China, recently issued a notice titled "Notice on Prohibiting Virtual Currency Mining Activities," which clearly states that virtual currency "mining" activities are considered outdated production processes and equipment that have been explicitly eliminated by the state. Related business activities are deemed illegal financial activities and will face risks such as loan cuts, power cuts, internet cuts, and credit penalties, with relevant personnel being held accountable for party discipline, administrative discipline, and legal responsibilities.

The notice emphasizes that civil legal actions related to investing in virtual currencies and their derivatives are invalid, and any resulting losses must be borne by the individuals themselves. To maintain social stability and regulate market order, the county of Butuo has proposed three measures: first, to prohibit all forms of virtual currency "mining" activities, including but not limited to Bitcoin and Ethereum; second, to require local township governments and regulatory authorities in the telecommunications and electricity sectors to strengthen inspections and supervision according to local and industry management principles, and to crack down on illegal "mining" activities; third, to encourage the public to report illegal "mining" activities.