thecoinrepublic.com
Crypto mining operations are migrating from China. The nation had dominated the global hash power for several years, and now have lost its dominance due to prohibitions and crackdown. Recently, it has been observed that the province of Hainan in the South of China is taking stringent steps. Such steps focus on curbing digital currency miners from the region. Moreover, besides backlisting the industry, the local authorities in the region are also establishing higher rates for electricity consumption for the leftovers mining community that are continuing in the region.
Hainan ensures cryptocurrency miners pay high for power
The ongoing crackdown on the crypto mining industry in China spreads at a tremendous pace. The prohibition of digital assets miners operating in the nation has reached the nation’s smallest and southernmost province Hainan as well. The province has labeled such operations as an eliminated industry and the remaining operators will have to face higher electricity bills.
According to a recent issued filings, the provincial Development and Reform Commission has cited that the differentiated tariffs for electrical energy will be imposed. Such rules came as part of a pricing mechanism that has been designed to reduce carbon emissions.
Authorities interfering with crypto mining
It is not the first time that China has imposed a ban on the nation’s cryptocurrency ecosystem. In 2017 as well, the country had banned all digital currency related activities. However, it is noteworthy that at the time no authorities have interfered with the crypto mining operations. However, this year the scenario has changed as the authorities are introducing stringent rules.
This year in May, the Beijing State Council decided to clamp down on the industry. Simultaneously, other provinces including Sichuan, Xinjiang, Qinghai, Yunnan, Inner Mongolia, Anhui, and Hebei also joined the offensive. The scenario came following the president’s pledge to achieve carbon neutrality in the next four years.
Miners cannot join electricity exchange program
The Chinese commission has also prohibited crypto mining operations from participating in the electricity exchange program of Hainan. Already participated miners have been ordered to withdraw the scheme before a designated deadline. However, the documents did not specify the exact deadline until when the miners are required to withdraw their participations. The commission has also vowed to boost government supervision over other activities.