Local provinces in China have begun to implement the electricity price hike law for cryptocurrency mining activities since the government imposed the cryptocurrency ban in the country.
Hainan Province has set a higher electricity charge of US$0.13 (0.8 yuan) per kilowatt-hour for cryptocurrency mining enterprises in the area, according to Chinese journalist Colin Wu.
Given the authorities’ long-standing anti-crypto position, it’s unsurprising, and if the latest electricity price spike spreads across the country, more miners may become powerless and relocate.
After the central government announced that cryptocurrency mining was classified as an obsolete industry, China’s Hainan Province announced an increase in the punitive electricity price of US$0.13 (0.8 yuan). https://t.co/cI8Rl7xDn8
— Wu Blockchain (@WuBlockchain) December 4, 2021
In the event that the crypto-mining ban is not enforced, the government has already threatened to raise electricity prices. The former warning, on the other hand, was only intended at state-owned entities, in the hopes that they would cease any active bitcoin mining operations in order to avoid being compelled to pay higher electricity bills.
Following that, Meng Wei, a spokesperson for the nation’s chief economic planner, the National Development and Reform Commission (NDRC), announced the impending shutdown of large-scale Bitcoin mining operations, as well as a crackdown on state-owned enterprises involved in the practice.
Meng Wei reiterated the Chinese government’s “unsustainable” arguments against cryptocurrency mining, claiming that it “consumes a lot of energy” and “emits a lot of carbon emissions.”
Crypto mining has been labelled as a “very dangerous” practice by the government, putting China’s Carbon Neutral goals in jeopardy.
Crack-down on illegal cryptocurrencies mining
With the nation’s green goals in mind, Chinese authorities believe it is critical to eradicating crypto from the face of the earth.
After cracking down on a slew of private crypto mining farms, the government has turned its attention to its own employees, who are being investigated for illegally mining cryptocurrencies in public spaces.
“In order to thoroughly implement the national work deployment on rectification of virtual currency mining and trading hype issues, orderly promote carbon peaking and carbon neutralization, and prevent and resolve risks in key areas, our province has recently launched a joint special rectification action to comprehensively combat the use of public Resources participate in virtual currency mining and trading activities.”, noted the official order by the Chinese authorities in Zhejiang province.