Beijing authorities are conducting inspections of cryptocurrencies’ data centers to better understand their impact on energy consumption, according to Thursday.

The Beijing Municipal Bureau of Economics and Information Technology on Tuesday sent an emergency message to data center operators in the city and asked if they are involved in mining bitcoin (BTC) and other cryptocurrencies. The report encourages data centers to report how much energy is consumed by cryptocurrency mining, the report states.

The agency said the three largest telecommunications companies in China were recipients of the message. He indicated that he did not know the reason for this initiative and whether it was part of a national campaign.

The news comes amid a recovery in Bitcoin’s hashrate, which plunged in mid-April due to massive power outages at a Chinese mining center in Xinjiang. After falling to 106 million terrachesh per second on April 17, Bitcoin’s hashrate rose to around 166 million terrachesh per second on Wednesday.

Bitcoin hashrate over the last three months. Source: Ycharts
In recent months, regulators have placed more emphasis on energy consumption when expanding cryptocurrencies. On Wednesday, a former government official said that cryptocurrency operations were an important contributor to the energy crisis in Kyrgyzstan. At the end of February, the authorities of the Chinese Autonomous Region of Inner Mongolia proposed to close all cryptocurrencies by the end of April in order to reduce energy consumption.

Source: CoinTelegraph

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