The Legal and Unwritten Rule Dilemmas Faced by Chinese Miners Going Abroad

Since China comprehensively banned cryptocurrency mining in 2021, a large number of miners have relocated their equipment to Kazakhstan, Russia, the United States, and other places. However, many miners have suffered significant financial losses after going abroad due to a lack of understanding of local laws and regulations, business environments, and unwritten rules.

In Kazakhstan, many miners sign hosting agreements through intermediaries, but upon arrival, their mining machines are often seized by customs for reasons such as incomplete paperwork and policy changes, with demands for exorbitant 'coordination fees.' Even when mining machines successfully enter the country, many so-called 'mining farms' fail to provide stable electricity and legal qualifications as promised in contracts; some are even just temporary setups on vacant land, unable to operate normally.

In Russia and some Eastern European countries, miners frequently face risks such as local governments changing policies, sudden spikes in electricity prices, and power interruptions. Some regions have gray interest chains, and without local intermediaries and specific connections, it is difficult to ensure legitimate operations.

Due to the complexity of overseas judicial procedures, language barriers, and high costs, miners find it challenging to seek redress after encountering fraud or breaches of contract, and most are left with no choice but to absorb losses themselves or sell their equipment at a low price to exit.

For miners going abroad, it is not only a matter of international transport and redeployment but also a contest of legal awareness, understanding of the political environment, and local networking resources. Acting rashly without adequate preparation will only make one a target in a foreign land.