China has revised its plan to conserve energy and is now redoubling efforts in crypto-mining operations. These new resolutions are aimed at curbing cryptocurrency mining due to high electricity consumption and environmental concerns. Beijing’s new anti-mining legislation follows similar measures recently introduced in the United States of America and the European Union. Both countries target crypto mining.
Beijing is “censoring virtual currency mining”
The plan is currently only available in Beijing, but the intention is to expand it nationwide. The document, in the paragraph entitled “Censoring Virtual Currency “Mining” Activities” (as Google translated it), praises “correction of mining” activities and urges national standards for “cleaning-up” virtual currency mines “in compliance with laws and regulation.”
This paragraph does not detail any specific steps against Bitcoin mining. The document is full of energy-saving measures, including controlling street light turn on times and indoor temperature. It’s all about regulation and full-on surveillance – not surprising in China.
In the opening paragraphs, the Communist Party and its “energy conservation officers” set the political context of the anti-mining campaign and the other energy saving objectives. The key objective is to implement “a comprehensive conservation plan” while “actively and continuously” promoting the “carbon neutrality”.
Does the world crackdown on Bitcoin Mining?
Beijing’s initiative follows the crackdown that was conducted across China on cryptocurrency. Chinese authorities banned cryptocurrency mining and transactions in 2021 after they became concerned that cryptocurrency speculation would disrupt China’s economy and finances. After the new law was passed, the China Bitcoin mining industry plunged to its absolute lowest levels. It had been between 65 and 75% of “hash rates” for the entire network. Despite this, the underground industry thrived and soon grew to more than 20% of global markets. The majority of cryptocurrency mining was forced to be done abroad.
The ban has been a disaster from an environmental standpoint. In Kazakhstan, Thailand and the United States, miners with access to hydropower had to turn to less environmentally friendly energy sources such as gas and coal.
Miners of crypto currency are searching for safe places. El Slavador may be a viable option
The crypto-mining industry faces tougher times in the future due to a rise in laws that target it. The industry may need to find safe havens beyond the largest economic powerhouses. Welcoming destinations include El Salvador. El Salvador was one of those welcoming destinations.