Beijing Tightens Energy Policy with Crypto Mining Crackdown

Beijing has unveiled a revised strategy for enhancing energy efficiency, which includes definitive steps to eliminate cryptocurrency mining operations. The city’s Development and Reform Commission, in collaboration with 11 other agencies, has published a comprehensive memo highlighting their dedication to managing both energy use and carbon emissions more strictly. The strategy accentuates a shift towards more advanced and superior energy-saving practices, aiming to contribute to the development of an eco-friendly civilization and a more picturesque Beijing.

This initiative marks a departure from China’s existing general stance against cryptocurrencies, targeting the energy-intensive nature of crypto mining. The city’s updated policy introduces a more precise and stringent method to cease such activities, aligning with the country’s goals to diminish environmental pollution, foster sustainable growth, and encourage innovation in technology and energy.

Specifically, the plan includes a clause (item 18) that mandates increased surveillance, evaluation, and corrective measures against mining activities to decisively eliminate the operation of virtual currency mining, in accordance with national guidelines.

This detailed and focused approach is expected to drive mining activities to more clandestine locations or abroad, as China pursues its ambitions for energy efficiency and carbon neutrality. Following the nation’s initial prohibition of crypto mining in 2021, a significant number of Bitcoin mining ventures relocated to the United States.

In response, the U.S. Energy Information Administration (EIA) has announced an initiative to closely examine the energy consumption of cryptocurrency mining facilities. This upcoming program aims to gather comprehensive data on the energy demands of the sector to gauge its effect on the American energy framework.

Endorsed by the White House Office of Management and Budget, this initiative emerges amid growing concerns about the environmental impact of crypto mining. With the evolution of the digital currency industry towards regions offering favorable energy rates and regulatory environments, this detailed data gathering aims to equip energy planners with crucial information and contribute to the dialogue on making energy consumption in the sector more transparent.

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