Inner Mongolia Seizes 10,100 Mining Rigs From Government Tech Park

The action comes days after China’s National Development and Reform Commission laid out its vision for eliminating crypto mining from the country.

AccessTimeIconSep 27, 2021 at 8:32 a.m. UTC
Updated May 11, 2023 at 4:34 p.m. UTC
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Authorities in China’s Inner Mongolia province seized 10,100 crypto mining rigs from a government-operated tech park, according to local media.

  • A branch of the Development and Reform Commission in Bayannaoer city found an illicit mining operation at the park, local media reported, citing China’s official Xinhua News Agency.
  • The action comes days after the country’s top government agencies announced a renewed crackdown on crypto trading and mining. China’s highest economic planning body, the National Development and Reform Commission, banned investment in new mining operations, and said all existing projects will be phased out.
  • The closure brings Inner Mongolia’s total to 45 mining projects shut down, saving the province 6.58 billion kWh of electricity – or 2 million tons of coal – a year, the article said.
  • The mine in question was consuming 1,104 kWh, according to the report, and was located at “SME [small and medium enterprises] Pioneer Park,” in the city’s Economic and Technological Development Zone.
  • Such zones and parks are areas where the government sets preferential policies such as reduced tax rates or cheap rent, usually for specific industries, hoping that hubs for innovation and development will flourish.
  • In the policy circular distributed Friday, central authorities told provinces and cities to stop all support of crypto mining firms, which would include any preferential treatment afforded to companies working in a government tech park.
  • In May, the State Council called on local governments to crack down on crypto mining. Inner Mongolia outlined a plan for shutting down the industry just days later. The latest policy gives a more comprehensive plan for the industry and gives control back to the central government.

UPDATE (SEPT. 27, 9:19 UTC): Adds location of mine, energy consumption, history on China’s ban.


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Eliza Gkritsi

Eliza Gkritsi is a CoinDesk contributor focused on the intersection of crypto and AI.

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