One of the Chinese provinces formerly a refuge for block reward mining is toughening up on the practice, seizing over 10,000 mining equipment from a government-run technological park. Inner Mongolian authorities busted the illegal mining business, claiming to save the region over 1,000-kilowatt-hours.
According to a report by the state-owned Xinhua News Agency, authorities seized 10,100 mining equipment from the SME Pioneer Park in the city’s Economic and Technological Development Zone.
In China, such parks are part of a government strategy to promote the development of specific sectors. As the Chinese government aims to support the growth of the sectors of the economy in which these parks operate, companies operating from them benefit from lower taxes, lower rent, and other incentives.
It was unclear whether officials had detained anyone or had any leads to who was behind the operation.
The busted enterprise allegedly used 1,104 kWh of electricity. Inner Mongolia’s 45th business is to close as the administration tightens its anti-mining stance in response to the central government’s crackdown on the industry. According to the Xinhua News Agency, these businesses use 6.58 billion kWh each year, equivalent to two million tons of coal.
China has activated the block reward mining industry, which has resulted in the expulsion of thousands of miners this year. This is especially significant because China once controlled most of the global mining sector, supposedly hosting over 70% of the BTC hash rate.
Since the crackdown began, more than 500,000 mining rigs have been banned from China, according to Fred Thiel, CEO of Marathon Digital Holdings.
Inner Mongolia, which, like Yunnan and Xinjiang, was once a paradise for miners, has been one of the hardest hit by the industry this year. The province, China’s third-largest, suggested draconian measures for mining companies a few months ago, including social credit blacklisting, which could lead to miners being barred from accessing public transportation.