No more cheap electricity for Inner Mongolian crypto miners, officials say

Published at: Aug. 26, 2020

Officials from Inner Mongolia are mulling an electrical policy that would prevent cryptocurrency miners from using inexpensive, state-subsidized electricity.

Per the Inner Mongolia Electric Power Group Co, the region expects to recover around 6.732 billion yuan ($977 million) in taxes and fees thanks to these new measures. They additionally expect 4.836 billion yuan ($702 million) specifically from crypto mining activities.

It is not known whether this ruling will be a short-term measure or if it will continue indefinitely.

One of the biggest Bitcoin (BTC) mining facilities, run by Bitmain, is located in the nearby city of Ordos.

Recently, asset manager Fidelity and crypto research firm BitOoda released a report claiming that China is responsible for around 50% of all Bitcoin mining. This is contrary to previous figures, which placed China’s involvement in Bitcoin at around 65%.

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