Government is targeting the mining farms

According to media reports, data center operators in China have to provide information about how much energy is used for mining. Is it “just” about achieving climate targets or is there more to it?

For a long time, China was considered a paradise for Bitcoin miners because electricity costs there are considered to be particularly low by international standards. Now, however, some miners are upset, at least if the government has its way. Above all, stricter surveillance is promised. According to reports, the government is particularly concerned about the high energy consumption of the mining farms. This is accompanied by higher CO2 emissions. Just recently, Square published a whitepaper, the core of which is about the closer integration of Bitcoin mining with renewable energies.

Beijing issued an “emergency notice” on April 27 to conduct inspections of data centers involved in crypto mining. This has caused some panic in the mining scene in China, according to a report by the News agency Reuters emerges. The Beijing Office of Economic and Information Technology requires data center operators in the city to report whether they are involved in Bitcoin and other crypto mining businesses.

China requires information from the operators

If so, they need to report the amount and proportion of electricity that is consumed by mining cryptocurrencies. This information comes out loud Reuters from an official from the office who wishes to remain anonymous. He also said that the three largest telecommunications operators in China are among the recipients of the notice. It is currently unclear what exactly is behind this investigation. It cannot be entirely ruled out whether this data center operator’s obligation to provide information will soon apply to the entire state.

Edward Lu, senior vice president of Canaan Inc, a major mining machine manufacturer in China, said he is receiving increasing inquiries from Canada, Northern Europe and Central Asia. There is not only cheap electricity en masse, but also clear and predictable regulations.

China used to be a place where cryptocurrency mining flourished, but business is shrinking due to politics

, so Lu.

The Chinese columnist Colin Wu however, it was quick to downplay such fears. The government’s action will not affect Chinese bitcoin miners too much.

This caused some panic in China. However, the Chinese government said it is only conducting an investigation. Data centers are difficult to use for bitcoin mining. They are mainly used for ETH Filecoin.