China remains a bit of an odd country when it comes to cryptocurrencies. Albeit mining is legally allowed in the region, those trying to do it by illegal means will face repercussions.
This uneasy situation has been in place for quite some time now.
Illegal Bitcoin Mining in China Remains a Problem
Although no one can legally trade bitcoin for fiat currency, they can mine BTC without problems.
That is, assuming the mining operation doesn’t pose any problems and the power consumed is legal.
In the case of one major bitcoin mining operation, the confiscation of all hardware on the premise was the only viable outcome.
Police officials seized over hundreds of bitcoin mining units during a raid in Tangshan.
While the mining units are legally obtained, the electricity to generate bitcoins is not.
It is not uncommon for Chinese miners to steal electricity, which is government-subsidized in most provinces.
By utilizing private transformers, one can easily tap into existing infrastructure without paying a cent.
This issue is then compounded by utilizing the electricity to mine bitcoin.
It is evident that the police will continue to crack down on these illicit operations.
For many, bitcoin is the only way to evade Chinese capital controls on a regular basis.
No official regulation of bitcoin mining exists in the country at this time, albeit that situation may change fairly soon.