Hainan Province in southern China has taken measures to curb cryptocurrency mining activities. In addition to blacklisting the industry, local authorities also impose higher electricity prices for mining companies that continue to operate in the area.

Hainan ensures that crypto miners pay more for electricity

Ongoing Suppress China’s cryptocurrency mining has reached the smallest and southernmost province of Hainan. The coin minting business has recently been classified as an “obsolete industry”, and the remaining miners in the area will soon face higher electricity bills.

According to a document issued by the Provincial Development and Reform Commission this week, as part of a pricing mechanism aimed at reducing carbon emissions, differentiated electricity prices will be levied on electricity.

Although China banned crypto-related activities such as trading as early as 2017, the authorities did not intervene in mining until this year. In May of this year, after Chinese President Xi Jinping pledged to achieve carbon neutrality in the next 40 years, the State Council of Beijing decided to ban the industry.Provinces such as Sichuan, Xinjiang, Qinghai, Yunnan, Inner Mongolia, Anhui, with Hebei Has joined the offensive of the central government.

The English version of the Global Times quoted official documents issued by the Hainan Provincial Government as reporting that companies still mining cryptocurrency in Hainan will have to pay 0.8 yuan (US$0.12) per kilowatt-hour (kWh) in the future.At the same time, the operator of China Southern Power Grid maintains a low electricity price for households in the area, 0.6 yuan (0 dollars.09) Per kilowatt hour.

The committee further banned crypto mining companies from participating in the province’s power exchange program. The miners have been ordered to withdraw from the plan before the specified deadline, the report did not specify. Regulators also vowed to strengthen government oversight of their activities.

The news from Hainan is in the National Development and Reform Commission of China (Development and Reform Commission) Announce In mid-November, it intends to hunt down state-owned industrial companies involved in the extraction of digital currency.Promote compliance with the National Development and Reform Commission proposal Starting in October, crypto mining will be added to the country’s latest “market access negative list”, which will prohibit investors from entering the industry.

Do you expect more restrictions on China’s crypto industry (such as the mining industry)? Share your thoughts on this topic in the comments section below.

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