Despite the fact that China imposed a mining ban last year, the authorities are still working to eliminate the industry. The Chinese province of Zhejiang announced an increase in fines for mining cryptocurrencies.
The Zhejiang branch of the National Development and Reform Commission (NDRC) and the national network operator’s local agency issued a notice requiring miners to pay an additional 0.5 yuan ($0.79) per kWh. Regulators are also calling on government agencies and network operators to increase control over cryptocurrency mining activities. The notice is dated Feb. 11 and was likely passed to government departments and key stakeholders for approval before it was released to the public.
This message caused confusion among Chinese users, who suggested that the introduction of higher electricity rates for miners means that cryptocurrency mining is allowed. The Zhejiang Public Service Center clarified that mining is still banned in the country. Increased electricity tariffs apply to violators of the ban as a measure aimed at increasing the fine. In addition, the governing bodies of Shandong province on February 23 urged citizens to report suspicions of mining cryptocurrencies through hotlines.
The Chinese authorities have set a goal to eradicate mining in the country. At the end of last year, short videos advertising mining and investing in cryptocurrencies were banned in China. In December, the Chaoyang District Court in Beijing dismissed a lawsuit filed by Fengfu Jiuxin, which had entered into a contract for the supply and maintenance of ASIC miners, due to violations of the law on cryptocurrencies. A little earlier, the National Development and Reform Commission of China warned of sanctions against state-owned enterprises engaged in cryptocurrency mining.
Source: Bits
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