Crypto mining rig operator Canaan Inc speaks up about China crackdown on the industry

Finally, some people are fighting back against the intense crackdown by the Chinese government on the cryptocurrency mining industry within its boundaries.

This after representatives from major Chinese bitcoin mining rig manufacturer Canaan Inc. argued the industry aids in putting to good use energy waste, jobs creation, and nourishment of the country’s economy.

During an earnings conference call, Canaan Chief Executive Officer Zhang Nangneng said, “For-profit miners prefer regions with low electricity prices that indicate oversupply, and likely energy waste. Bitcoin miners also help create jobs in impoverished regions and contribute to fiscal coffers.“

Not everyone should be subject to crackdown

In continuing his argument, Nangneng pointed out that while it is true that bitcoin mining plants that use fossil fuel get in the way of China’s green efforts, facilities that run on renewable and sustainable sources should not be affected by the crackdown.

Canaan’s sentiments were apparently in response to the Financial Stability and Development Committee’s China State Council statement saying the government will be engaging in crackdown on bitcoin mining and trading behavior to prevent “transfer of individual risks to the society.”

Effects are now showing

As it turns out, it didn’t take long for China’s efforts to thwart cryptocurrency mining activities to manifest, as it is already affecting the industry.

The Canaan big boss said the new policies imposed by the government generated uncertainty that ultimately led some miners to flee the Asian giant. As a result, some of Canaan’s clients have already halted placing new orders for mining equipment.

The company shared that for the first quarter of 2021, 78.4% of its revenue came from the overseas market. It grew exponentially from being at almost 5% in the same period back in 2020.

 

Image courtesy of Cointelegraph News/YouTube

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