Chinese authorities have fined a hydropower plant in Central China’s Hubei province 43,493 yuan (US$6,528) for “illegally supplying electricity to virtual currency mining operations,” as the country continues to crack down on cryptocurrency operations.
See related article: Beijing banned crypto mining, so China miners went underground
Fast facts
- In addition to the fine, the authorities will seize income of 21,747 yuan from selling power to crypto mining operations, according to a penalty notice dated May 11 and released last week by a local branch of the National Energy Administration.
- China started a series of intensive crackdowns on crypto mining in May 2021 and introduced a blanket ban in September.
- However, underground mining operations persist, with companies finding means to stay off the government’s radar.
- Even after the ban, China in January controlled 21.1% of the global Bitcoin hashrate, to become the second-largest Bitcoin producer after 37.8% in the U.S., according to a study from the Cambridge Centre for Alternative Finance.
See related article: China banned Bitcoin mining and became world’s No.2 Bitcoin miner