Cryptocurrency

Bitcoin miners may ditch China following crackdown on crypto

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For the past few weeks, a series of bad news coming from China gave the bitcoin market a lot of painful results they have had to deal with.

This was started off by news that crypto miners in the Sichuan region had gone offline after the province imposed restrictions on energy-intensive industries such as bitcoin mining.

After that, three of the country’s top financial self-regulatory organizations issued a joint statement that reminded the public of the ban on crypto assets that took effect back in 2017.

The hammer was brought down when the Chinese State Council led by President Xi Jinping’s top economic advisors, was reported to be on crackdown against mining activities.

The aftermath of the crackdown

Unsurprisingly, many Chinese bitcoin miners are considering moving out of China and taking their business elsewhere after regulators re-emphasized plants to outlaw bitcoin-related payment services.

Some miners in Southwest China’s Sichuan Province are said to be operating as usual, but it will only be a matter of time before the crackdown catches on them.

A source, who spoke on condition of anonymity, told Global Times that the recent ban of the country for bitcoin-related activities will reshape the landscape of the global mining industry and will force more Chinese miners to migrate to other countries, like the U.S.

Speeding up the move

Digital Renaissance Foundation Managing Director Cao Yin said as far as he knows, some bitcoin miners in China, especially those using thermal power, may opt to move to U.S. and Canada.

The bitcoin investor also said the move has started way back in 2017 but the process seems to be speeding up now in light of the new developments.

“It’s possible that bitcoin miners may eventually move out of China, but production and exports of bitcoin mining machines won’t stop in China because of market demands,” he said.

 

Image courtesy of Cointelegraph News/YouTube

Jet Encila

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Jet Encila

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