China’s crackdown on crypto mining followed fatal coal crashes –

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China’s crackdown on crypto mining followed fatal coal crashes – fr


China’s growing push to curb cryptocurrency mining has been sparked in part by fears that the practice has fueled an increase in illicit coal mining, endangering lives and undermining environmental goals. ambitious of Xi Jinping.
The authorities have decided to act after finding that the rise in electricity consumption of server farms underlying Bitcoin and other tokens has been a key driver of the growing demand for coal in parts of China, according to a person who participated at high-level government meetings on the issue and asked not to do so. be identified by discussing private information.

Growing demand for coal has prompted some producers to restart idle mines without official approval, resulting in higher safety risks and an increase in fatalities this year, the person said.

While the central Chinese government has imposed a strict ban on trading in digital assets and discouraged crypto mining for years, authorities in some remote areas of the country have been more welcoming to the industry because it generates much-needed income. About 65% of global Bitcoin mining took place in China in April 2020, according to a University of Cambridge estimate.

Rising Concerns Over Environmental Ripple Effects Help Explain Why China Financial Stability and Development Committee said on May 21 that it would crack down on crypto mining and trading, which amounted to one of the government’s strongest condemnations to date of the crypto ecosystem.

The warning fueled a the sale of cryptocurrencies at record highs and has fueled a debate on how investors should respond to the environmental costs of digital assets. Thoughts on the question of Tesla Inc. founder and crypto advocate Elon Musk have in turn destroyed and has hinted at billions of dollars in market value in recent weeks. According to a estimate, every dollar of Bitcoin value created in 2018 was responsible for $ 0.37 in health and climate damage in China and $ 0.49 in the United States.

Bitcoin has fallen about 40% since mid-April, facing an epic wave that has drawn everyone from Wall Street pros to mom-and-pop investors in Seoul. The largest cryptocurrency was trading at $ 39,293 at 10:35 am Hong Kong time.

The National Energy Administration and China’s National Development and Reform Commission did not immediately respond to requests for comment.

Unraveling the impact of crypto mining on coal consumption in China is not easy, especially during times of economic recovery when demand for electricity grows more widely. But in regions like Xinjiang and Inner Mongolia, which have long been the industry’s favorite destinations, Chinese authorities have established a direct link between crypto and coal.



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