Beijing Authorities Conducting Checks on Crypto Mining Datacenters 

Sahaj  |  May 1, 2021, 7:30 pm
Beijing Authorities Conducting Checks on Crypto Mining Datacenters 

Beijing authorities have recently been conducting checks on crypto mining data centers to assess and understand its energy consumption and impact on the electric infrastructure. Although, the International Media Outlets reported it as a rumor, and it has also been confirmed by the Chinese State Media.

Beijing Authorities Send Emergency Note to Telecom Operators

In accordance with the reports shared, the Beijing Municipal Bureau of Economy and Information Technology was the entity that ordered the checks on the data centers of the city.

In the very first instance, the authorities wanted to authenticate whether these companies are involved in Bitcoin and other cryptocurrency mining businesses:

“Emergency Notice Concerning the Data Center Involving Bitcoin and Other Cryptocurrency Mining Businesses in Our City’s Data Centers.”

In addition to this, an unnamed source was cited in the reports shared that the notice also targeted three of the biggest telecommunications operators in China.

The measure took place on Tuesday, and then state media Pengpai confirmed the news on Thursday.

Additionally, the bureau wants to acquire reports on the amount of power consumed and shared by crypto asset mining.

Although the information specifies that the notice was issued in Beijing, there is no official confirmation on whether the checks are being conducted across the country or not.

Role of China’s Carbon Neutral Stance Behind the Checks

Well, there are not many details on the reasons that drove the authorities of Beijing to conduct such checks. However,  it has been suggested that the measure could come in the wake of the latest shut down of the digital currency mining projects in the Chinese region of Mongolia, as the country seeks to improve energy efficiency.

As reported recently, the carbon-neutral stance of China adds weight to the backs of the bitcoin extractors. 

Also, as a matter of fact, a local financial columnist said that Sichuan electricity powered by carbon materials will be increasing by 150% this year.