Hydropower plant in China’s Hubei province fined for powering crypto mining
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
