Crypto mining is a small yet easy target for China’s efforts to realize carbon neutrality.
In recent weeks, China has come down hard on crypto mining by shuttering operations across at least five provinces or regions that are rich in either coal or hydropower.
China’s own environmental policy is a key factor in the mining crackdown, industry pros said. Specifically, China’s carbon neutrality policy created an energy shortage within the country due to its drastic reduction in coal-fired power, which contributed over 57% of the country’s energy use.
“The carbon neutrality policy cuts back coal power, which has been a major energy source for the country,” said Winston Ma, an adjunct law professor at New York University and author of “The Digital War – How China’s Tech Power Shapes the Future of AI, Blockchain and Cyberspace.” “China will have to search the edge of its power grid to make up that gap.”