Crypto Mining Global Status: Researching Global Policy Approaches and Energy Challenges

For Bitcoin miners, securing a stable location with affordable electricity has become even more critical following Bitcoin’s fourth halving. To optimize costs and enhance resource efficiency, miners are actively seeking low-cost energy sources worldwide. 

As mining regulations continue to evolve, gaining insight into regional policies and energy accessibility is vital for strategic planning. This article examines key mining regulations and energy landscapes across major global hubs to help miners navigate the industry effectively.

North America: Amid major policy shift

North America has secured a status of one of the world's leading Bitcoin mining regions. Benefiting from the favorable VC ecosystem in the U.S., mining companies have secured premium resources, including bulk-purchasing advanced mining equipment at discounted prices and accessing low-cost electricity through partnerships or even acquisitions of power plants.

Policy-wise, the U.S. has not prohibited cryptocurrency mining. Although the previous administration proposed a “Digital Asset Mining Energy excise tax (DAME)” several times between 2023 and 2024, the measure never officially took effect.  In 2025 miners’ outlook has become increasingly optimistic.  

While mining regulations differ across states, the general outlook remains favorable. Some states actively support mining, with Texas standing out as a key hub. The state provides tax incentives for miners who utilize flared natural gas to generate electricity, promoting the efficient use of an otherwise wasted resource. 

Similarly, Canada has not prohibited mining, though some provinces have imposed stricter rules due to electricity shortages. Overall, the country leverages its low-cost hydropower while implementing regulations to maintain grid stability.

Due to relatively high residential electricity rates, mining operations in North America typically operate at medium to large scale. In 2024, the U.S. average industrial electricity rate was approximately $0.0815/kWh, with mining clusters concentrated in Texas, Kentucky, Georgia, and New York. Actual mining electricity costs in these areas typically range between $0.03/kWh and $0.06/kWh. Additionally, American miners can hedge market volatility risks using compliant derivatives. Currently, the U.S. accounts for approximately 38% of global Bitcoin mining hashrate.

Canada's average industrial electricity price stands around $0.099/kWh, though rates in hydro-rich Quebec are considerably lower, with large-scale mining farms securing power between $0.05 and $0.08/kWh. According to current data, Canada contributes approximately 7%-8% of the global hashrate. Collectively, North America accounts for roughly 45% of the global hashrate.

Central Asia: Tightening regulatory rules, cheap electricity

In Central Asian countries, policies have increasingly shifted towards formalizing mining activities through regulation rather than outright prohibition. This approach aims to leverage local energy resources economically while maintaining electricity grid stability. 

Kazakhstan introduced licensing, taxation, and regulatory measures between 2022 and 2023. Likewise, Uzbekistan and Kyrgyzstan have strengthened licensing requirements and raised electricity costs for miners.

Central Asia benefits significantly from abundant hydropower and coal resources. According to GlobalPetrolPrices, the average residential electricity price in the region is approximately $0.06/kW making small-scale mining economically viable. In regions with particularly abundant energy, mining farms enjoy costs as low as $0.03 to $0.06/kWh.

Overall, Central Asia offers clear energy advantages, though increasingly strict policies and quota limits have forced some miners to relocate. 

China: Underground mining persists despite general ban

China was historically the global center for Bitcoin mining, previously accounting for over 50% of global hashrate. However, since the strict nationwide prohibition enacted in 2021, crypto mining remains officially banned. 

Despite these restrictions, data suggests underground mining continues in electricity-rich provinces like Sichuan and Xinjiang. Industry sources estimate that electricity costs for these underground mining operations are below $0.05/kWh, though official data remains unavailable. China’s underground operations are believed to account for around 20% of the global hashrate, despite the strict regulatory environment.

Other Regions: Latin America, Africa, Middle East, Southeast Asia, and Europe

In Latin America, numerous mining operations previously flourished in hydro-rich Paraguay and Uruguay. However, Paraguay increased electricity tariffs for mining activities in 2024, prompting many mining companies to relocate to Argentina or explore energy opportunities near oilfields. Still, U.S.-based companies such as HIVE Digital continue to expand their mining presence in Paraguay through new developments and acquisitions.

Africa has not implemented comprehensive bans on crypto mining, but unstable electricity supply generally limits mining operations to small-scale and dispersed facilities. In recent years, Ethiopia has utilized hydropower generated by the Grand Ethiopian Renaissance Dam (GERD) to encourage mining activity, offering highly competitive electricity rates. Despite these advantages, significant electricity shortages remain a persistent issue.

The Middle East exhibits a complicated regulatory approach towards mining. Iran has legalized crypto mining, authorizing selected power plants for mining purposes, though it prohibits operations during peak energy consumption periods and rigorously enforces penalties on unauthorized mining activities. Countries such as the UAE, through partnerships with U.S.-based Marathon Digital, and Oman, offering favorable tax rates and competitive electricity prices, have also actively attracted mining businesses. Despite abundant and low-cost energy, regulatory uncertainties persist in the Middle East.

Southeast Asian nations have not outright banned crypto mining but strictly enforce regulations against unauthorized electricity use. Countries like Malaysia, Indonesia, and Laos frequently crack down on illegal mining operations, shutting down sites involved in electricity theft.

The European Union does not prohibit crypto mining but regulates it in line with climate policies. High electricity costs in Germany, France, and the UK make large-scale mining unfeasible, concentrating most European mining activity in Nordic nations such as Norway, Sweden, and Iceland. These regions offer miners access to cost-effective hydropower and geothermal energy. Excluding Russia, Europe accounts for roughly 5% of the global Bitcoin mining hashrate.

As Bitcoin’s halving cycle advances, miners are increasingly relying on affordable renewable energy sources, including hydropower, wind, and solar. Additionally, mining operations can take advantage of lower electricity rates during off-peak hours, contributing to better energy grid management by utilizing excess power.

On a global scale, North America has cemented its stance as a dominant Bitcoin mining hub, while Central Asia continues to experience steady growth. As regulatory clarity improves and sustainable energy options expand, miners will have more strategic opportunities. Adapting to these evolving conditions will be essential for maintaining profitability in the competitive mining landscape.