(BlockBar) Government authorities in Sichuan province of China are reportedly probing into local bitcoin mining farms that have been constructed without official approval.
It is reported that the land-resource bureau in Sichuan’s Garze county has found bitcoin mining farms which have no prior approval built at the sites of hydropower stations. The Economic and Information Bureau in Garze has formed a committee with other agencies to probe into the illegal construction issue.
An official from the Economic and Information Bureau said: “We are still investigating on the issue and can’t disclose more details on the overall situation.”
The bitcoin mining farms were found being built at hydropower stations along the Dadu river in northwestern Sichuan to make the most of the cheap electricity in the area. It is to be noted that authorization for construction was not obtained beforehand.
An official from the local land resource bureau is reported “If [a bitcoin mining farm] is built within the authorized area of a power station for electricity consumption, we need to verify if their usage is legal. If it’s outside the authorized area, then it needs to be dealt with as the construction was not approved,”.
The miners have been investing again in Sichuan’s mountainous areas including the Garze and Aba counties as the summer rainy season approaches in China. They are hoping to boost ROI with the regions’ cheap power.
Nearly 50 percent of the global bitcoin network’s hash rate came from facilities located in Sichuan at the time, says a report published in November by blockchain research firm Coinshare.
It is worth considering that the total hash rate of bitcoin network has climbed to nearly 58,000 petahashes per second. It is up about 80 percent from last December, when more than 600,000 mining machines were estimated to have shut down amid bitcoin’s bear market prices.
The official from the Economic and Information Bureau gave a firm indication that Garze county does not allow bitcoin mining projects. They reportedly said:
“We don’t allow outside investment in the area to be involved in bitcoin. Even for big data projects, we will conduct an investigation into the nature of the data involved before making a decision.”