In a decisive move to boost energy conservation, Beijing, China, has intensified efforts to regulate cryptocurrency mining activities. A recent government notice, jointly issued by the Beijing Municipal Development and Reform Commission and 11 other departments, outlines a revised plan focused on strengthening energy conservation initiatives.

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• City authorities, in collaboration with 11 departments, enacted a revised plan to strengthen energy conservation by decisively addressing virtual currency mining activities.
• Beijing’s crackdown is driven by both a severe power crisis, the worst in a decade, and a commitment to aggressive climate targets, aiming for carbon neutrality by 2060.
• The ripple effect of Beijing’s actions prompts Bitcoin miners to relocate to the West, while other jurisdictions, such as the U.S., respond with emergency checks on crypto power usage to meet rising demands.

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Beijing Strengthens Measures Against Crypto Mining to Boost Energy Conservation

This plan highlights the firm determination to ‘persistently frustrate’ stopping the virtual money mining industry in the city. The reform proposes a hierarchy of energy preservation, ensuring safety and stability in its operation simultaneously

To implement these measures, Beijing authorities are mandated to “rectify” crypto mining activities through enhanced monitoring, analysis, and the classified rectification of mining operations. Online investigator WuBlockchain highlighted the development, stating, “Beijing, China, requires strengthening the monitoring and analysis of cryptocurrency mining activities in 2024.”

This crackdown comes amid a dual challenge faced by Beijing – a power crisis and ambitious climate targets. The country witnessed its most severe energy shortage in a decade, with multiple provinces reporting power shortages in 2021 and 2022, according to the Centre for Research on Energy and Clean Air.

​Compared with old restrictions on cryptocurrency mining, this recent action is unique for several major reasons. Bitcoin miners have already moved to the West since China has announced all cryptocurrency-related transactions as illegal, with an emphasis on its Central Bank. The primary target here is primarily located in America while performing most of their activities there.

Nevertheless, the power crisis is also one of the driving forces behind the current crackdown because it is a life-breath for creativity mining. Beijing’s administration has also declared that such activities are required to contradict its goals of achieving aggressive climate targets like carbon neutrality by 2060. In response, bitcoin mining has been condemned by the government spokesperson Meng Wei as “utterly toxic”, and law enforcers are to further tighten measures until all illegal outlawed firms can be eliminated.

Meanwhile, other parts of the world are taking steps to ensure transparency in energy use. In the United States, the government has initiated emergency checks on crypto power usage to meet winter power demands. The U.S. Energy Information Administration (EIA) recently called for an emergency review and clearance on crypto mining facilities, citing the rising price of Bitcoin and its impact on electricity consumption.

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