In a bold move to uphold energy conservation, Beijing has updated its energy policy to impose stricter regulations on cryptocurrency mining, aligning with national energy and ecological goals.

Revamped Energy Conservation Measures

The Beijing Municipal Development and Reform Commission, in coordination with several other departments, has released a comprehensive plan to enforce energy conservation. These new measures are designed to clamp down on cryptocurrency mining by strengthening the monitoring and analysis of such activities, and resolutely enforcing regulations to curb crypto-related operations within the city.

A Focused Approach

Unlike previous broad cryptocurrency restrictions in China, Beijing’s latest directive takes a more focused stance. Crypto mining, known for its heavy energy use, is now facing a rigorous crackdown. This initiative is in line with China’s broader goals of pollution reduction, promoting green growth, and fostering innovation in technology and energy.

Granular Action Against Crypto Mining

Item 18 of the updated plan outlines the city’s strategy to intensify the scrutiny of mining activities. The aim is to comprehensively clean up virtual currency ‘mining’ operations, adhering to the national guidelines. This targeted action may drive mining businesses to either go underground or relocate offshore as China marches towards its energy efficiency and carbon neutrality objectives.

Global Shifts in Crypto Mining

Following the initial cryptocurrency mining ban in China during 2021, a significant number of Bitcoin mining operations migrated to the United States. However, the U.S. is not turning a blind eye to the environmental impact of these activities. The Energy Information Administration (EIA) is preparing to launch a new initiative aimed at closely examining the power usage of crypto mining facilities in the country.

U.S. Energy Oversight on Crypto Mining

The EIA, with endorsement from the White House Office of Management and Budget, plans to collect detailed data regarding the energy consumption of commercial cryptocurrency miners. This initiative is part of a proactive approach to environmental conservation and is expected to play a significant role in informing power planners and shaping the regulatory conversation on energy use transparency in the burgeoning digital currency industry.