China’s Hainan Province Ramps Up Crackdown on Crypto Mining Operations

China’s Hainan Province Ramps Up Crackdown on Crypto Mining Operations

The province of Hainan in South China has taken steps aimed at curbing crypto mining activities. Besides blacklisting the industry, local authorities are also introducing higher electricity rates for the mining enterprises that continue to operate in the region. Hainan to Ensure Crypto Miners Pay More for Power

The ongoing crackdown on cryptocurrency mining in China has reached the country’s smallest and southernmost province, Hainan. The coin minting business has been recently listed as an “eliminated industry” and the remaining miners in the region will soon face higher electricity bills.

According to a document published this week by the provincial Development and Reform Commission, the differentiated tariffs for electrical energy will be imposed as part of a pricing mechanism designed to reduce carbon emissions.

While China banned crypto-related activities such as trading back in 2017, authorities did not interfere with mining until this year. In May, the State Council in Beijing decided to clamp down on the sector following President Xi Jinping’s pledge to achieve carbon neutrality in the next four decades. Provinces such as Sichuan,Xinjiang, Qinghai,Yunnan,Inner Mongolia,Anhui, and Hebei have already joined the central government’s offensive.

Enterprises that are still mining cryptocurrency in Hainan will have to pay 0.8 yuan ($0.12) per kilowatt-hour (kWh) of electricity in the future, the English-language Global Times reported, quoting the official document issued by the regional administration. At the same time, the China Southern Power Grid operator maintains a lower price for households in the region, 0.6 yuan ( $0.09) per kWh. Tags in this story ban, Carbon Emissions, China, chinese, clampdown, commission, Crackdown, Crypto, crypto miners, crypto mining, Cryptocurrencies, Cryptocurrency, Electricity, Hainan, Miners, mining, power, province, provinces, rates, region, regulator, tariffs

The commission further bans crypto mining companies from participating in the province’s electricity exchange program. Miners have been ordered to withdraw from the scheme before a designated deadline, which the report doesn’t specify. The regulator has also vowed to enhance government supervision over their activities.

The news from Hainan comes after China’s National Development and Reform Commission (NDRC) announced in mid-November its intentions to go after state-run industrial enterprises involved in the extraction of digital currencies. The push followed the NDRC’s proposal from October to add crypto mining to the country’s latest “Negative List for Market Access” which would make the industry off-limits to investors.

Do you expect more restrictive measures against crypto industries in China such as mining? Share your thoughts on the subject in the comments section below. Bitcoin Hashrate Rises Despite Price Drop, Mystery Hashpower Returns MINING | 8 hours ago Russia, Ukraine Shut Down Several Cryptocurrency Farms MINING | 18 hours ago

Image Credits: Shutterstock, Pixabay, Wiki Commons Previous articleRoss Ulbricht Genesis Collection NFT Auction Sees Millions of Dollars in Ethereum Bids Next articleCrypto Conference DeFiCon 2021 to Be Hosted on December 18-19 in Brooklyn, NYC Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article. Read disclaimerShow comments More Popular NewsIn Case You Missed ItEthereum L2 Scene Heats Up With Boba Network Taking Second Spot in TVL

Boba Network, a recently released L2 layer for Ethereum, has quickly jumped to second place in TVL (total value locked) among all expansion layers. Boba, which is a fork of Optimism, another L2 layer based on rollups, reached more than ... read more.Ethereum Devs Assess Reducing Data Transfer Cost 5x, EIP-4488 Becomes Possible Solution Crypto Stamp Crashes Swiss Post’s Online Store With Launch Day Demand Kevin O"Leary on SEC v Ripple Lawsuit Over XRP: "I Have Zero Interest in Investing in Litigation Against SEC" Despite Crypto Market Rout, Total Value Locked in Cross-Chain Bridges Jumps 9% in 30 Days