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Beijing is conducting a check on data centers involved in cryptocurrency mining to understand their impact on energy consumption. The probe was directed by city authorities. The Beijing Municipal Bureau of Economy and Information Technology sent an “emergency notice” to the city’s data center operators earlier this week to report on if they are involved in crypto mining and if so, to provide the amount and share of power consumed by them, reported the Chinese state media PengPai. The three biggest telecom operators in China also received the notice. “China used to be a place where cryptocurrency mining was thriving, but the business is shrinking due to policies,” Edward Lu, senior vice president of Canaan Inc, a Chinese cryptocurrency mining machines maker told Reuters. The Beijing Bureau of Economics and Information Technology meanwhile has clarified that the notice was issued by the bureau, mainly from the perspective of the types of services carried by the data center and the energy consumption, and it is the normal business work of the bureau. The local publication Wu Blockchain noted,
“Security inspections in northwestern China have basically ended, and the bitcoin hashrate has begun to recover. This inspection is not aimed at Bitcoin mining, but on the overall safety of electricity.”Just this month, Li Bo, deputy governor of the People's Bank of China called Bitcoin and stablecoins investment options and said that they are not currencies. He further said,
"Until we figure out what regulatory rules are needed, we will continue to maintain our current initiatives."Additionally, Li Bo believes that if stablecoins are to become widely used payment solutions, stronger regulatory rules are required, which will be more stringent than Bitcoin’s current supervision.