- Inner Mongolia was a haven for crypto mining
- Cheap electricity and labor spawned the crypto mining trade
- Citizens can report illegal mining on a dedicated hotline
Inner Mongolia authorities have started taking strict actions on crypto mining activities. The crypto mining activities are colossal power consumers, and the region is unable to fulfill the cut in carbon emissions target.
Cointelegraph.com reports that authorities are coming down hard on crypto mining operations. Inner Mongolia has also set up hotlines to report suspected crypto mining activities. Inner Mongolia is an Autonomous Area in China and was once a home for multitudes of crypto mining operators. The miners accounted for 7.71% of the global BTC network hash rate between September 2019 and April 2020. However, of late, authorities are worried about the environmental costs of the mining activities. The crypto miners were attracted to Inner Mongolia because of its cheap electricity and labor. However, the electricity is produced using fossil fuel, which did not fit well with Beijing’s plan to reduce carbon emissions.
The region produces dirt cheap electricity.
Inner Mongolia is blessed with vast deposits of coal. Numerous coal-fired power plants produce dirt-cheap electricity, which crypto miners use. However, the downside is carbon pollution. A Greenpeace report revealed that Inner Mongolia has the highest number of new coal-fired power plants from 2016 and 2020 of any DRC in China.
China’s ambitious plan to reduce carbon emission.
Beijing has embarked on an ambitious plan to reduce carbon emissions. The latest announcement by Inner Mongolia Autonomous Region Development and Reform Commission, or DRC, is another step in this direction. Authorities are finally cracking down on illegal and widespread crypto mining activities. A dedicated hotline is now operational 24/7, and citizens can report such unlawful mining. Many miners masquerade as data centers and enjoy perks like low tax, easy land lease rates, and subsidized electricity.
https://cointelegraph.com/news/inner-mongolia-sets-up-hotline-to-report-suspected-crypto-miners
Andrew is a blockchain developer who developed his interest in cryptocurrencies while pursuing his post-graduation major in blockchain development. He is a keen observer of details and shares his passion for writing, along with coding. His backend knowledge about blockchain helps him give a unique perspective to his writing skills, and a reliable craft at explaining the concepts such as blockchain programming, languages and token minting. He also frequently shares technical details and performance indicators of ICOs and IDOs.