Chinese bureau checking cryptocurrency mining data centers

It has been confirmed by the Chinese state media that authorities in Beijing have been checking cryptocurrency mining data centers in order to review the power consumption of the operations and its effects on the country’s energy infrastructure.

Reuters earlier reported that the agency that ordered the said check was the Beijing Municipal Bureau of Economy and Information Technology.

At first, the agency only wanted to verify if the concerned companies are involved in Bitcoin (BTC) and other cryptocurrency mining businesses. This was done through the issuance of an “emergency notice” concerning the data center involved in cryptocurrency mining. Also, three of the largest telecommunications operators in China were targeted by the notice.

Not yet countrywide

As cited by news.bitcoin.com, the move of the Beijing Municipal Bureau of Economy and Information Technology was carried out last week and was confirmed by the state media Pengpai.

The bureau also wants to get reports on the amount of power consumed by crypto asset mining for a more detailed review.

The information from the state media might have confirmed that such actions are being taken by the agency in Beijing, but there is no official confirmation yet on whether the checks are conducted or will be conducted across the country or not.

No clear reason behind the check

Despite the confirmation, there are no reasons revealed as to why the Beijing authorities want to conduct such checks.

Earlier reports suggested that the action taken was in the wake of the shutdown of digital currency mining projects in the Chinese region of Inner Mongolia in light of efforts by the country to improve its energy efficiency.

Moreover, it is thought that China’s carbon-neutral stance adds extra pressure to the Bitcoin (BTC) miners’ backs. After the drop in hashrate in the province of Xinjiang, there were reports of electrical cost increase coming in the Sichuan region.

 

Image courtesy of Cointelegraph News/YouTube

Micky is a news site and does not provide trading, investing, or other financial advice. By using this website, you affirm that you have read and agree to abide by our Terms and Conditions.
Micky readers - you can get a 10% discount on trading fees on FTX and Binance when you sign up using the links above.