Beijing Management's Eye on Mining Farms

There is research on cryptocurrency mining in China

Beijing officials are inspecting crypto mining data centers to better understand their impact on energy consumption, Reuters reported on Thursday!

On Tuesday, the Beijing Municipal Bureau of Economics and Information Technology sent a report asking the city's data center operators to report whether they are involved in mining Bitcoin and other cryptocurrencies.

A bureau official said that China's three leading telecom operators are among the institutions to which the report was issued. He added that he does not know the reason behind the initiative or whether it was part of a nationwide operation.

The news came as a result of the Bitcoin hash rate, which fell sharply in mid-April due to massive power outages at China's mining center in Xinjiang. After falling to 106 million TH / s per second on April 17, BTC's hash rate rose to 166 million TH / s on April 28.

The energy consumption of cryptocurrency mining seems to have attracted the attention of regulatory agencies in recent months. A former government official yesterday argued that crypto mining was the main cause of the energy crisis in Kyrgyzstan. In late February, the authorities of China's Inner Mongolia autonomous region proposed closing all cryptocurrency mining facilities by the end of April to reduce energy consumption.