China's Zhejiang Province Implements Punitive Electricity Prices for Crypto Mining
Authorities are still working to eliminate the industry months after it was banned.
The eastern Chinese province of Zhejiang said it is introducing punitive electricity prices for crypto miners, following in the footsteps of the Hainan province and Inner Mongolia region even as authorities work to eliminate the industry, which was banned last year.
- The National Development and Reform Commission, China's top economic planning body, proposed punitive electricity prices for crypto miners in November.
- The NDRC's Zhejiang branch and the local agency of the national grid operator jointly published a notice on Feb. 14 saying crypto miners would have to pay an additional RMB 0.5 ($0.79) per kilowatt hour (kWh). The notice also called on government entities and grid operators to strengthen their monitoring for crypto mining activity. The notice was dated Feb. 11, meaning it was probably passed around government departments and key stakeholders before being posted online.
- In December, the southern island of Hainan introduced an RMB 0.8 per kWh surcharge for miners, CCTV reported. Inner Mongolia added RMB 1.0 per kWh starting in January.
- An official from the Zhejiang Government Service Center told reporters on Tuesday that crypto mining is still prohibited. The official was responding to confusion among some Chinese internet users, who had speculated the introduction of higher costs meant mining was allowed, China Times reported.
- The electricity premium is a supporting punishment to the ban, the Zhejiang official said yesterday, according to China Times.
- Also yesterday, authorities in Beijing's neighboring province of Shandong, called on citizens to report on suspected mining activity through hotlines.
- In October, authorities in Zhejiang busted a graphics processing unit (GPU) mining operation at a government facility after screening 4,699 internet protocol addresses.
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.
Learn more about Consensus 2024, CoinDesk’s longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.