Bitcoin mining in China could be subject to 'tighter regulation' amid carbon concerns

特邀专栏作者

2021-04-30 14:05 (UTC+8)

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According to reports, China is paying more attention to crypto asset mining due to concerns about its rising carbon emissions.

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According to reports, China is paying more attention to crypto asset mining due to concerns about its rising carbon emissions.

The domestic encrypted asset mining business may be subject to stricter regulation in the future, and it is said that the government pays special attention to the energy consumption of Bitcoin mining.

Issued by Beijing on April 27"emegency notice", inspecting data centers involved in bitcoin and other encrypted asset mining operations, which is said to have caused some panic in the country.

However, Chinese columnist Colin Wu (Wu Said Blockchain) quickly downplayed concerns on Twitter that this could affect Chinese bitcoin miners in the short term, stating:

"This caused some panic in China. The domestic government, however, says it is only conducting an investigation. Data centers are difficult to use for Bitcoin mining, mainly for ETH, Filcoin."

According to PengPai News (accessed via translator),"emegency notice"is a routine job of the Beijing Municipal Bureau of Economy and Information Technology as it tries to get a clearer picture of the energy consumption of mining operations in Beijing data centers.

It has not yet been revealed whether the checks will be carried out nationwide, or what the impact might be in the future. However, according to PengPai, Yu Jianning, the rotating chairman of the Blockchain Committee of the China Communications Industry Association, believes that this is an omen. he thinks,"In the context of carbon neutrality, blockchain mining will indeed have stricter regulation in the future"。

This view is possible when referring to the situation in Inner Mongolia. Inner Mongolia will no longer be a mining hub. The country recently banned crypto mining in the region to meet its new carbon reduction goals, and crypto miners have been given until the end of April to shut down operations.

China's 14th"five year Plan"Outlines a range of targets, including from 2021 to 2025"carbon dioxide intensity"18% reduction target and"energy intensity"A 13.5% reduction in the target.

Beijing is not well-known as a crypto-asset mining center due to its higher electricity prices than other regions, which could mean other centers such as Xinjiang and Sichuan could be targeted in the future.

Data from the Cambridge Bitcoin Energy Consumption Index (CBECI) estimates that Xinjiang accounted for 35% of China’s Bitcoin hash power in April and roughly 23% of the world’s hash rate.

Tighter mining conditions could have global ramifications, with some citing Bitcoin’s plunge to $50,000 earlier this month partly due to a drop in hashrate caused by a power outage in Xinjiang around April 17.

KOL encryption asset analyst Willy Woo speculates"Whales who know more about what's happening in China"Compilation: Bibabu