Sichuan Province to Investigate Illegal Bitcoin Mining Farms

Wilfred Michael 

Wilfred Michael

News reporter

30 May 2019,
10:08
Sichuan Province to Investigate Illegal Bitcoin Mining Farms

A cover page report by a state-owned news agency, confirmed Thursday that authorities in the Chinese province, Sichuan has opened an investigation into the operations of some illegal cryptocurrency mining farms situated within its terrain.

The alleged illegal mining farms did not only set up their facilities at sites mapped out for hydropower stations but also did this without obtaining approval from local authorities according to the report. Their goal was to enjoy the abundant and cheap electricity available in the region and thus generate a higher return on investment for their businesses.

An official from the Economic and Information Bureau in Garze, a county in Sichuan that has seen a higher concentration of the mining activities, said in the report,

“We are still investigating the issue and can’t disclose more details on the overall situation.”

Meanwhile, another section in the report specified that a particular Bitcoin mining farm that has its facilities situated along with the hydropower station in Ginkang. The station alone could power as much as 50,000 Bitcoin mining equipment, with the report even mentioning that the farm’s operator already has used 60% of that capacity.

While discussing the measures that authorities could take to address the growing number of illegal mining farms an official from the local land resource bureau reportedly mentioned that they would verify the legal status of farms built within the authorized area of a power station.

“If it’s outside the authorized area, then it needs to be dealt with as the construction was not approved.” the official said.

In another development about the illegal use of government-provided electricity to mine cryptocurrencies, we reported last week that the Australian Police Force (AFP) charged a public servant who used computing power generated for the agency’s network to mine cryptocurrencies for personal benefits.

 

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