Also, law enforcement officers confiscate profits from the sale of a resource for cryptocurrency mining.
What happened? Chinese authorities fined a hydroelectric power plant in Hubei Province 43,493 yuan ($ 6516 at the rate of May 25) for illegally supplying electricity for cryptocurrency mining. This is reported by the portal Yahoo Finance.
What other sanctions have been applied to the company? In addition to imposing a fine, the authorities decided to confiscate the proceeds from the sale of electricity in the amount of 21,417 yuan ($ 3208), according to a preliminary notice published last week by the local branch of the National Energy Administration.
What events have happened before? In May 2021, China was the leader in bitcoin mining, accounting for 70.9% of the global hashrate. However, after a complete ban on cryptocurrency mining in July 2021, the indicator fell to zero and began to grow only in September, reaching 30.4 EH / s. Against the background of the ban on mining in China, the income from BTC mining in August 2021 increased by $ 35 million per day.
In September 2021, the People’s Bank of China (PBOC) declared illegal all financial activities related to bitcoin and other virtual currencies. The services that cryptocurrency exchanges provide to residents of China were also outlawed.
Despite the ban on cryptocurrencies and mining, China managed to return to second place in the world in terms of bitcoin hashrate. The country accounts for 21% of the computing power for btc mining.
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