Energy & Science
China’s Crypto Mining Crackdown Followed Deadly Coal Accidents
- Authorities acted after a surge in illicit coal extraction
- China accounts for an estimated 65% of Bitcoin mining power
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China’s escalating push to rein in cryptocurrency mining was triggered in part by concern that the practice has stoked a surge in illicit coal extraction, endangering lives and undermining Xi Jinping’s ambitious environmental goals.
Authorities decided to act after concluding the spike in electricity consumption from server farms underpinning Bitcoin and other tokens was a key factor behind rising demand for coal in certain parts of China, according to a person who participated in high-level government meetings on the issue and asked not to be identified discussing private information.