Beijing Targets Cryptocurrency Mining Operations in New Energy Conservation Plan

Beijing has unveiled a new policy aimed at strengthening energy conservation measures within the city, with a focus on reducing carbon emissions and pollution. Among the targeted activities are cryptocurrency mining operations, which will face increased oversight and regulation. This move comes in line with a national ban on cryptocurrency mining and trading imposed in 2021. Despite the ban, reports indicate that Bitcoin mining is still taking place in China, with Chinese miners contributing 21% of the global network hashrate. Beijing’s energy conservation plan also includes inspections to ensure compliance with phased-out equipment and the proper use of energy. The government will take action against industries and companies found in violation of these regulations.

Overview of Beijing’s New Energy Conservation Plan

City’s focus on energy conservation

Beijing has unveiled a comprehensive new energy conservation plan aimed at addressing various aspects of the city’s operations. The plan recognizes energy conservation as a crucial area for the conservation of energy resources and the development of an ecological civilization. By focusing on energy conservation, the city aims to reduce carbon emissions, combat pollution, and promote the use of green energy.

Cryptocurrency mining as a target

Among the activities targeted by Beijing’s energy conservation plan is cryptocurrency mining. Cryptocurrency mining, especially Bitcoin mining, has come under scrutiny due to its significant energy consumption. By addressing this issue, Beijing aims to curb the energy-intensive nature of cryptocurrency mining activities and promote more sustainable practices in the industry.

Other industries targeted for conservation efforts

In addition to cryptocurrency mining, Beijing’s energy conservation plan also focuses on several other sectors. These include construction, transportation, industry, and information technology. By implementing measures to promote energy conservation in these industries, Beijing aims to make substantial progress in reducing energy consumption and promoting sustainable development.

Actions to be Taken on Cryptocurrency Mining Activities

Strengthening monitoring and rectification

Beijing’s energy conservation plan emphasizes the need for strengthened monitoring and rectification of cryptocurrency mining activities. The city intends to enhance its surveillance and analysis of mining activities and implement targeted measures to rectify any non-compliance. By closely monitoring the industry, Beijing aims to ensure that cryptocurrency mining activities align with energy conservation goals.

Cleaning up virtual currency activities

In addition to monitoring and rectification, Beijing plans to clean up virtual currency activities within the city. This includes taking decisive action to eliminate any illegal or non-compliant virtual currency operations. By doing so, the city aims to create a more regulated environment for virtual currency activities and ensure that energy-intensive mining operations do not contribute to unnecessary energy consumption.

Support from National Policy

Ban on cryptocurrency mining and trading

Beijing’s efforts to address cryptocurrency mining activities align with the national policy in China, which has banned both cryptocurrency mining and trading. In 2021, the People’s Bank of China instructed all banks in the country to forbid any crypto-related activities. This ban provides a solid foundation for Beijing’s energy conservation plan and reinforces the need to crack down on energy-intensive mining operations.

China’s banks instructed to forbid crypto-related activities

To support the national policy, China’s banks have been instructed to prohibit any activities related to cryptocurrencies. This measure aims to prevent individuals and businesses from engaging in cryptocurrency mining, trading, or other virtual currency operations. By cutting off financial support for such activities, China aims to curb energy consumption and promote a more sustainable approach to the digital currency industry.

Ongoing Bitcoin Mining in China

Reports of Bitcoin mining in China

Despite the ban on cryptocurrency mining, recent reports indicate that Bitcoin mining is still taking place in China. Chinese miners continue to contribute to a significant portion of the global network hashrate, with a share of 21%. The United States currently leads with a share of 38%. These reports highlight the challenges of enforcing the ban on mining activities and the need for stricter measures to address energy-intensive operations.

Chinese miners’ share of global network hashrate

The fact that Chinese miners still maintain a substantial share of the global network hashrate raises concerns about the effectiveness of the ban on cryptocurrency mining. While Beijing and the national government have taken steps to address energy conservation, the persistence of mining activities in China underscores the need for continued monitoring and enforcement efforts to achieve the desired outcomes.

Inspections on Energy-Consuming Units

Supervising usage of phased-out equipment

As part of its energy conservation plan, Beijing will conduct inspections on energy-consuming units in the city. The focus of these inspections will be to supervise the usage of phased-out equipment that may have high energy requirements. By ensuring that outdated and energy-intensive equipment is not in use, Beijing aims to reduce unnecessary energy consumption and promote energy-efficient practices.

Punishment for illegal energy use

In cases where inspections reveal illegal energy use or non-compliance with energy conservation regulations, Beijing’s government will take appropriate action to rectify the situation. This may include imposing penalties and enforcing measures to compel industries and companies to improve their energy consumption practices. By implementing punishments for illegal energy use, Beijing sends a clear message about the importance of adhering to energy conservation guidelines.

Public Opinion on Beijing’s Energy Conservation Plan

Views on the plan’s effectiveness

Public opinion on Beijing’s energy conservation plan is mixed. Some individuals and organizations view the plan as a proactive and necessary step toward reducing energy consumption and addressing environmental concerns. They believe that targeting activities such as cryptocurrency mining demonstrates Beijing’s commitment to sustainable development. However, others express skepticism about the plan’s effectiveness, citing the ongoing Bitcoin mining activities as evidence of the challenges in enforcing energy conservation measures.

Commenting on the initiative

The energy conservation plan issued by the city of Beijing has sparked discussions and debates among various stakeholders. Some applaud the efforts to tackle energy-intensive industries and activities, acknowledging the need for stricter regulations and enforcement. Others question the feasibility of achieving significant reductions in energy consumption, citing the persistent mining activities as an example. The initiative has become a topic of interest and debate within China and beyond as stakeholders evaluate its potential impact on energy conservation and sustainable development.

In conclusion, Beijing’s new energy conservation plan aims to address various industries and activities, including cryptocurrency mining. By strengthening monitoring and rectification efforts, cleaning up virtual currency activities, and aligning with national policies, Beijing seeks to promote energy conservation and reduce carbon emissions. However, ongoing Bitcoin mining activities and concerns about enforcement highlight the challenges associated with implementing and enforcing energy conservation measures. As public opinion remains divided, the plan continues to generate discussions about its effectiveness and long-term impact on energy conservation in Beijing.