Reports of illegally built mining farms in China’s Sichuan province have caused quite the controversy in the Chinese papers. The authorities are all set to investigate local bitcoin (BTC) mining farms which are located at the bitcoin “global mining capital” of Sichuan.
It’s a scandal involving several bitcoin mining firms with over 30,000 bitcoin mining machines, which do not have the required government approval to have been built. These farms are located along the Sichuan’s Dadu river, which is an important river in China.
What makes this location alluring to miners is the big project that’s being undertaken there. The river is all set to host the world’s biggest embankment dam called Shuang Jiang Kou, which will provide extremely cheap electricity prices for mining bitcoin. This helps the miners cut major costs.
The province has served as a global bitcoin mining capital since 2017, driven by the cheap electricity, low population density and cold climate that the place has to offer. The investigation is still underway and at this time the authorities are unwilling to reveal any more information.
The Sichuan province along with other provinces like Xinjiang, Inner Mongolia and Yunnan together make China’s mining covenant, and host a plethora of mining farms. China reportedly controls the majority of the largest bitcoin mining pools in the world.
However, China is quite strict with its regulation of crypto related activities and it will ideally carckdown hard on such illegal mining activities or farms.