Beijing, China, has ramped up efforts to curb crypto mining activities as part of its renewed focus on energy conservation. A recent government notice, issued by the Beijing Municipal Development and Reform Commission and 11 other departments, outlines a revised plan aimed at bolstering energy conservation measures.
The plan underscores the need to “firmly eliminate virtual currency mining activities” to ensure compliance with existing laws and regulations. Energy conservation is prioritized to achieve a higher level of efficiency and safety in the city’s energy operations.
Beijing authorities are tasked with intensifying monitoring, analysis, and targeted rectification of crypto mining activities. Online commentator WuBlockchain highlighted Beijing’s directive to enhance monitoring and analysis of cryptocurrency mining activities in 2024.
This crackdown on crypto mining represents a significant departure from previous efforts, driven by several factors. Firstly, China is grappling with a severe power shortage, exacerbated by increased demand from crypto mining operations. The country experienced its most significant energy shortfall in a decade, prompting concerns about resource allocation.
Furthermore, Beijing has emphasized the detrimental impact of crypto mining on its ambitious climate targets. With a goal of achieving carbon neutrality by 2060, the Chinese government views bitcoin mining as a hindrance to its environmental objectives. Government spokesperson Meng Wei has denounced bitcoin mining as “extremely harmful” and has pledged stricter enforcement measures.
Internationally, governments are taking proactive steps to monitor and regulate energy consumption in the crypto mining sector. For instance, the United States government has initiated emergency checks on crypto mining facilities to address winter power demands. The U.S. Energy Information Administration has called for urgent data collection to better understand and manage energy consumption associated with crypto mining activities.
The evolving landscape of energy conservation and crypto regulation underscores the need for coordinated efforts to balance economic interests with environmental sustainability. As Beijing and other jurisdictions implement stricter measures, the future of crypto mining remains subject to regulatory scrutiny and evolving energy policies.
