Wednesday, October 5, 2022

Chinese Police Clamp Down on Illegal Crypto Miners

Following a nationwide ban on cryptocurrency mining by the Chinese government last year, a report has it that the Guangdong province Development and Reform Commission recently clamped down on illegal cryptocurrency miners operating from a farm in the city of Guangzhou and also seized pieces of equipment estimated to be worth about 5 million yuan ($791,450).

Operating out of an Electric Vehicle (EV) charging station, the authorities had the lead to inspect the EV station after it discovered that the power consumption records for the facility did not add up.

According to the authorities, the illegal mining facility where about 190 professional mining rigs were seized had been in use for over 1000 hours and had a staggering energy consumption of about 90,000 kilowatt-hours of electricity.

“They operated in the guise of a technological firm, but behind those walls and the security-manned gate is an illegal activity where people carry out crypto mining,” said the authorities after shutting down activities within the mine.

Beijing Bans Virtual Currency Mining

Prior to this nationwide ban on virtual currency mining by the government of Beijing, China had been an epicenter for Bitcoin mining, as the activities of its miners put together contributed well over 60% of the Bitcoin (BTC) network hash power.

But with the continued enforcement of this ban and crackdown on all mining centers, China’s contribution to global Bitcoin mining has nosedived to the zero percentile mark.

According to the government, the activities of Bitcoin miners have far more demerits than merits as mining is responsible for huge energy consumption, increased emission of carbon which is a known environmental pollutant, and coupled to these, Bitcoin mining has no substantial effect on economic growth.

Since this zero-tolerance order on crypto miners by the Beijing government, miners have either had to shut down their operations or migrate out of China as authorities within the various provinces have since conducted regular raids and inspections all in a bid to ensure that not even the most seemingly insignificant home-based mining farm thrives on Chinese soil.

Victoria Nye
A Blockchain columnist who is enthusiastic about developing a network interface between the real world and the cryptosphere.

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