Mining is one of the most important activities within cryptocurrency at this is the way by which cryptos are created in the first instance and are one of the bedrocks of the industry. Mining is also a very controversial activity mostly due to its high level of electricity consumption as many people around the globe have been arrested for stealing electricity in order to mine cryptocurrency. This, coupled with other issues such as cryptojacking, means that governments constantly have to be all their toes in monitoring crypto-related mining activity.
According to a December 22, 2019 report, the Chinese government has seized roughly 7,000 crypto mining equipment for illegally tapping into power from the national grid in order to mine.
This equipment was seized during recent inspections that took place on 70,000 households, 3,061 merchants, 1,470 communities, as well as mines and villages within the Kaiping District of Tangshan city. The operations were carried out as a collaboration between the local police and officials from the state’s electricity department as they were trying to track down unauthorized energy use within the region.
According to the official reports, miners have been stealing electricity from local villages to power their mining activities which were consuming up to 40 times the rate of electricity of a typical family as they ran their machines 24 hours a day. After the operation which began since April last year, 6,890 ASIC miners and 52 high-power transformers were seized.
All these seem to be in an effort from China to crack down on the rise cryptocurrency mining which is interesting considering the fact that the country is responsible for as much as 66 percent of the global crypto mining industry. This crackdown could lead to miners moving the operations overseas or having to shut down altogether. It will also be interesting to see what becomes of the crypto mining industry worldwide as well as in China when the national digital token is officially rolled out.