China may be planning to limit the use of power by bitcoin miners, according to a January 4th Bloomberg report. The plan was outlined on the previous day by the People\'s Bank of China in a meeting held behind closed doors. The move could pose a potential challenge in the Chinese cryptocurrency industry, whose extensive computer networks supply the power behind Bitcoin transactions.

The cause for concern is the colossal energy consumption required to power those networks, which comprises approximately 70% of the total global activity in Bitcoin mining. Many of the world\'s biggest cryptocurrency miners are located there, and take advantage of cheap coal or the hydroelectric generating facilities in Yunnan and Sichuan provinces.

Although electricity is cheaper in China than in many other parts of the world, Chinese officials are said to be concerned that some bitcoin miners might have taken advantage of the country\'s price differentials. Miners can set up networks in areas of lower energy prices, and can then have a substantial effect on normal electricity usage. Local officials have apparently been detailed to investigate these high levels of energy consumption, with a view to imposing some curbs on the industry. Other regulators may be involved, such as China\'s National Development and Reform Commission, which is responsible for overseeing the power supply.