Short answer is yes, but people are still confused about it.
Cryptocurrencies mining involves adding transaction records to the blockchain digital ledger. Miners receive a reward in the form of cryptocurrency for this work. As it is a new niche, many people wonder whether cryptocurrencies mining is legal or not. The answer to that question varies depending on your country and other factors as well.
In most countries crypto mining isn't regulated by law so far, so there are no restrictions how much energy you can use for mining activities. In general, electricity price is one of the biggest costs in cryptocurrency mining after hardware, so cheaper electricity might be a big advantage. That's why miners prefer locating their farms near power plants using hydroelectricity – they have access to abundant cheap electricity produced by damns. In most cases, hydroelectric power stations have a lot of spare capacities so they don't mind miners locating their farms nearby.
China has recently changed its stance on cryptocurrency mining and now it's trying to restrict this activity due to overheating of local market . On top of that some regions where bitcoin is popular such as Inner Mongolia, Xinjiang and Tibet are facing droughts and authorities try to avoid wasting water for cooling down mining equipment as well as preventing any possible future droughts which will devastate local agriculture if not treated properly. It is that China will change its guidelines about cryptocurrency mining once again and return to promoting this activity in the nearest future.