A number of Chinese provinces have increased the rate at which crypto miners must pay for electricity – despite the fact that mining has been outlawed in the nation.

The China Times reported that the authorities in Zhejiang Province, Hainan Province, and the Inner Mongolia Autonomous Republic had all raised their electricity rates for crypto miners in spite of a nationwide mining ban imposed last year. The move has caused no shortage of confusion for observers both domestic and international.

This development is likely a result of a bureaucratic pile-up dating back to before last September’s crackdown on mining, however, and not an indication of a change in government policy.

Beijing has been clear in its messaging over crypto in China. In numerous public announcements made since September 2021, it has sought to make clear that crypto is a public menace, and that all forms of crypto transactions are illegal in China, also claiming that crypto mining is a highly polluting and illegal form of industry that will not be tolerated in any form.

Indeed, the China Times added that a representative at the Zhejiang Province local government’s service center and the Shangcheng District of Hangzhou had confirmed that crypto mining “activities” were “still not allowed,” and that the new document was actually a form of “supporting punishment” that added to the ban.

The media outlet explained:

“This announcement [higher fees for mining] does not mean that mining is legal if higher electricity tariffs are applied. Rather, it means that after miners have been discovered, the electricity they used to power their mining activities can be calculated and charged to the miner accordingly.”

Whether such a response is simply a matter of saving face