Cryptocurrency Banned Miners at China’s State Firms

Chinese President Xi Jinping  (AP)

China’s campaign to eradicate cryptocurrency has unearthed hundreds of miners stealing electricity from public institutions, a revelation that comes as the country grapples with a power shortage.

According to a government statement and unnamed media reports, Zhejiang and Jiangsu provinces recently began targeting miners. who were squandering the resources of state-owned firms, government agencies, universities and research institutes.

According to the media outlet, around one-fifth of the approximately 4,500 internet protocol addresses involved with unlawful mining operations. The article claimed that approximately 260,000 kilowatt hours of electricity were consumed each day.

Cryptominers

Cryptominers generally connect their equipment to cloud services called mining pools to validate blockchain transactions, allowing their physical locations to trace. This would direct investigators to electric company accounts.

The Zhejiang government issued a statement on its official social media account, which contained images of equipment seized during raids and indicated that 184 IP addresses were suspected of unlawful mining abusing public resources.

“The rapid upgrade of mining technology and severe competition for computing power have resulted in significant energy consumption, which is in direct conflict with the province’s carbon peak and carbon neutrality targets as a large energy importer,” the statement stated.

No one answered calls to Zhejiang’s Cyberspace Administration or Jiangsu’s Communications Administration.

Since last month, a power crisis caused by a coal scarcity has impacted wide parts of China, weighing on growth expectations in the world’s second-largest economy. While miners use a lot of electricity, their usage in Jiangsu was only 0.01 percent of total demand in 2020. Together, the two eastern provinces account for more than 16% of China’s overall GDP.

Assuring citizens that Beijing is doing everything it can

It is working hard to provide adequate electricity supplies to keep businesses functioning and households as the weather cools. On Thursday, Premier Li Keqiang visited a Midea Group Co. factory to underscore his government’s commitment to meeting power demand.

Last month, Chinese officials announced that they would prohibit all crypto transactions in the country and phase out cryptocurrency mining. As part of the crackdown, the chief economic planner directed local officials to investigate unusual energy consumption.

China’s anti-cryptocurrency campaign pressures miners to shut down or relocate to more hospitable locations such as Europe and North America.

According to a Cambridge Centre for Alternative Finance research published Wednesday. The United States has become the world’s epicenter of Bitcoin mining. The accounting for 35.4 percent of the worldwide hash rate at the end of August. A metric indicating the amount of computing power utilized to extract the digital currency, was more than in April.

Hundreds of banned crypto miners were siphoning power at China’s state firms (livemint.com)

China Extends Cryptocurrency Ban; Bitcoin Collapses – All Coin Index

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