Southwestern Chinese province Sichuan authorities are investigating the activity of local BTC mining farms, as they are supposed to be created without official permission.

According to the local media, the Bureau of Land and Resource in Garzê discovered farms of BTC mining that were deployed in hydro power plants without prior permission.

It is noted, Garzê Economic Information Bureau with other agencies organized a group to study the legal construction regarding issue.

An Economic Bureau co-worker mentioned, “We are in investigation process and can’t disclose any details.”

The question is about the BTC mining farms that are built at hydroelectric power stations along the Sichuan Province Dadu River. Their location is chosen for a reason – to maximize cheap electricity’s use in the area. However, founders of farms didn’t receive any permission for that kind of activity.

The media also mentions a particular farm, which is capable of operating 50,000 BTC unit mining equipment and 60% of this equipment is already in operation.

The Bureau of Land and Resource official report states, “We are planning to check whether a BTC mining farm activity is legal and has permission for a farm building.”

As the rainy season in China is close, miners again invest in the deployment of farms in the mountainous areas of Sichuan, including Garzê and Ngava districts, hoping to increase the return on investment through cheap energy in the regions. During the dry season in Sichuan, Chinese miners spread throughout the country and abroad.

However, the Economic Bureau official representative noted that BTC mining enterprises are prohibited in the Garzê district: “We do not allow third-party investors to participate in such enterprises. For projects related to big data, we will conduct appropriate investigations before the final decision is made.”