Beijing has issued an updated implementation plan to promote energy conservation, clearly stipulating the measures that will crack down on cryptocurrency mining activities.
The Beijing Municipal Development and Reform Commission, along with 11 other departments, issued a detailed notice confirming their commitment to the dual control system of energy consumption and carbon emissions.
This plan also emphasizes the transition to a “higher level and higher quality” of energy conservation, in line with building an ecological civilization and a “beautiful” Beijing.
It is worth noting that this directive differs from the broad anti-cryptocurrency measures already in place in China.
Cryptocurrency mining has come under fire for its excessive energy use, and the city's recent measures represent a more focused and stringent approach to stopping such operations. This campaign is in line with the country's goal of reducing pollution and green expansion, as well as encouraging technological and energy innovation.
Under Clause 18 of the plan, the authorities are set to strengthen their monitoring, analysis and correct classification of mining activities in order to “resolutely purge virtual currency 'mining' activities” by following national guidance.
This implementation signals a more detailed and targeted measure that is likely to drive underground or offshore mining operations as China strives to meet energy efficiency and carbon neutrality goals.
Following China's original ban on cryptocurrency mining in 2021, many Bitcoin mining operations have moved to the US.
Meanwhile, the United States – through the Energy Information Administration (EIA) – unveiled a new initiative to audit energy consumption at cryptocurrency mining facilities in a proactive stance on environmental conservation.
Under this program, scheduled to launch next week, the EIA will collect in-depth data on energy use by commercial cryptocurrency miners to understand the sector's impact on the country's energy landscape.
The move, approved by the White House Office of Management and Budget, comes amid concerns about the environmental footprint of cryptocurrency mining.
As the cryptocurrency industry matures, characterized by its migration to regions with advantageous energy costs and regulatory climates, this extensive data collection effort aspires to keep energy planners informed and inform regulatory discourse on energy transparency.
