- Oct 25, 2021
- Reaction score
Hainan to Ensure Crypto Miners Pay More for Power
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
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.
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 (
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.