Crypto Mining Faces Tighter Restrictions in Beijing’s New Energy Plan

Beijing has updated its energy conservation strategy with a clear message: cryptocurrency mining is now a major target. The city’s Municipal Development and Reform Commission, in collaboration with 11 other departments, has made public a plan that not only aims to control energy consumption and carbon emissions but also to enhance the quality of energy conservation. This step is part of an effort to build a more eco-friendly Beijing and aligns with the broader goal of creating an ecological civilization.

The focus on curtailing crypto mining activities marks a departure from China’s existing broad anti-cryptocurrency policies. The decision reflects concerns over the high energy demands of crypto mining and its compatibility with China’s ambitions for environmental sustainability and technological innovation. By specifically targeting mining operations, Beijing is intensifying its efforts to mitigate pollution and encourage the use of cleaner energy sources.

The plan details a robust monitoring system under its 18th item, aimed at identifying and rectifying crypto mining activities. The government intends to enforce stringent measures to “resolutely clean up virtual currency ‘mining’ activities,” a move that aligns with national directives. Such targeted enforcement is expected to drive mining operations either underground or to other countries, as seen when China initially banned crypto mining in 2021, leading to a migration of operations to the U.S.

In response to the environmental concerns associated with crypto mining, the U.S. is taking steps to better understand the sector’s energy consumption. The Energy Information Administration (EIA), backed by the White House Office of Management and Budget, is set to launch a new initiative to collect detailed data on the power usage of commercial crypto mining. This program aims to assess the environmental impact of crypto mining on the U.S. energy landscape, showcasing a proactive approach to environmental conservation.