Bitcoin Miners in China Receive “Emergency Notification” Due to Energy Issues

According to reports, the government of China’s capital is trying to determine the impact crypto miners have on power grids.

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The Beijing City Bureau for Business and Information Technology has started sending “emergency notifications” to local data centers asking operators to report whether they are involved in cryptocurrency mining. Reuters reported yesterday.

According to the sources and a document viewed by the point of sale, the office is asking large data centers – including the three largest telecommunications operators in China – to disclose whether they are involved in mining Bitcoin or other cryptocurrencies.

And if the answer is yes, they want to know the amount and proportion of electricity used by these activities, the press release said.

The point of sale source, an official from the office who chose to remain anonymous, also said the investigation was initiated directly by Beijing authorities. However, he did not know why the initiative was launched or whether it was nationwide.

Why the sudden interest?

While the exact reason for this investigation is unclear, it is possible that Beijing’s latest initiative has in part to do with the recent energy emergency in Xinjiang Province, which is home to around 80% of China’s cryptocurrency mining farms.

How CryptoSlate According to reports, a water leak occurred in a coal mine in Xinjiang on April 10, causing the central government to temporarily suspend operations at all similar locations. This resulted in a massive power outage in the area, forcing many Bitcoin farms to go offline. Hence the hash rate of the Bitcoin blockchain – or the total computing power –decreased by up to 25% in the next few days.

Following the emergency, the Chinese central government opened an investigation to determine what caused or may have catalyzed the failure and what could be done to prevent such accidents from occurring in the future.

Because Xinjiang has such a high concentration of miners, it is possible that they have become one of the “suspects” in this case. As a result, Chinese authorities could now try to measure total energy consumption in the mining sector and see if miners in cryptocurrency could have a harmful impact on power grids across the country.

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