Illegal crypto mining in China
Cointelegraph reported in September that regulators in the autonomous Chinese province of Inner Mongolia issued a notice demanding a clean-up of the province’s crypto mining enterprises.
Several departments within Inner Mongolia determined the need to rectify the mining industry within the province. The organizations named were the Development and Reform Commission, the Public Security Department, the Office of the Ministry of Industry, The Financial Office and the Big Data Bureau.
As of the end of May, China was reportedly responsible for 70% of global BTC mining. At the time, reports emerged that Chinese regulators were investigating illegal mining operations in Sichuan — a province responsible for 70% of China’s Bitcoin (BTC) mining thanks to the electricity generation of the Dadu River Basin.
Illegal Bitcoin miners are turning insane profits
Currently, the cost of mining a single Bitcoin in China is about $8,000 when the electricity cost is approximately $0.045/kWh. But when that cost is zero – such as when stolen electricity is being used – then it means that the only expenses being incurred are the mining rigs, personnel, and rent.