The cryptocurrency mining industry has been struggling with declining profits in China for quite some time. Although mining operations started to emerge in the Middle Kingdom in 2014, the considerable drop in cryptocurrency mining profitability over the last couple of years has led to a mass exodus of bitcoin mining operations from China. Some companies have decided to completely cease operations in China, while others are slowly shifting their operations abroad to countries that share a more favorable business climate. One such company is Hong Kong-based cryptocurrency mining operation Btc.top, which recently confirmed that it will be ceasing operations in mainland China.
As per the notice by mining pool operator Btc.top, mining pools of the company will be ceasing operations in the country. The notice read: “As you may be aware, there is a Chinese ban on cryptocurrency trading and ICO activities, which also targets mining. We have decided to comply with this regulation, and will cease offering cloud mining service within the next two months.” The reason for the ban is ostensibly to protect investors, but it has been criticised by some as a mere government cover up attempt to protect the monopoly of the local Bitcoin mining industry by state-owned enterprises. Furthermore, the August 1 deadline is not the end of the story. In a clear message to miners, the government has also stated that should any miners continue
Chinese bitcoin miners are facing increasing pressures from the authorities. The latest evidence of this is that two of the largest mining operations in the nation, Btc.top and Hashcow, have both ceased offering their services to Chinese customers.. Read more about chinese bitcoin mining companies and let us know what you think.Following stern warnings from several key trade associations and regulators in China, two well-known exchanges, Huobi and Okex, have suspended their services to Chinese residents. After two exchanges closed a number of services to mainland residents, two bitcoin mining companies also left the country on Monday. Btc.top and Hashcow have suspended service due to regulatory risks.
crypto-currency companies leave China
Two mining companies reported the suspension of special services for mainland residents. This news follows recent announcements by Huobi and Okex, when they announced over the weekend that they would stop offering certain services to Chinese citizens. The Chinese government has issued a series of statements and the first warning dates back to the 19th. Published in May. The last 48 hours have been crazy. What’s going to happen? What has already happened? Here are some initial thoughts: 1, This is the first time such a senior member of the PRC has announced a crackdown on bitcoin mining and trading. – Mustafa Yilham (@MustafaYilham) May 23, 2021 Reuters reported at the time that China had banned financial institutions and payment companies from providing services related to transactions in cryptocurrencies and warned investors against speculative trading in cryptocurrencies. However, the report was quickly dismissed by the cryptocurrency community as a source of fear, doubt and uncertainty. A few days later, more reports surfaced in various publications that Chinese authorities were discussing the possibility of monitoring bitcoin mining. Over the weekend, exchanges Huobi and Okex suspended service for customers in mainland China. Huobi has discontinued a number of mining services, including the sale of mining rigs and cloud hosting services for Chinese residents. Okex has stopped trading in the platform’s yuan currency, according to local Blockchain reporter Colin Wu. According to Okex and Huobi, bitcoin (BTC) prices are recovering somewhat.
Btc.top and Hashcow stop serving Chinese residents, rumors of cheapminers rise to the surface
Today, two mining companies said they will also stop supplying Chinese residents. Btc.top, a large mining pool with 1.7 percent of the world’s hash rate, said it had suspended operations in China, due to regulatory risks. In a similar case, mining company Hashcow also said it would stop buying mining equipment. CAUTION for US and non-PRC minors: Prepare for cheap drilling rigs from Chinese miners to close in the coming weeks, but no access to offshore energy. If you are interested, I would be happy to give you an introduction to the other side (some great miners have already contacted me). – Dovey Rug The Fiat Wan (@DoveyWan) May 23, 2021 Since the first warning about bitcoin mining on the 21st. In May, the overall BTC hash rate dropped. At the time of publication, the hash rate is 140 exahashes per second (EH/s), having passed the 158 EH/s mark 24 hours ago. Apart from the recent announcements by Btc.top and Hashcow, no other mining company has announced its intention to cease operations in China. Meanwhile, Dovi Wang, founding partner of Primitive Ventures, and Mustafa Ilham of Bixen commented on the state of regulatory restrictions in China. In the last 48 hours, Yilham wrote on Twitter. Chinese miners have already begun to speed up [the process of] migration to other countries. There will also be a large number of bitcoin mining machines available. How do you feel about Btc.top and Hashcow stopping mining operations with Chinese residents? Let us know what you think in the comments below.
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Bitcoin, bitcoin (BTC), bitcoin miners, bitcoin trading, BTC.TOP, China, Chinese bitcoin miners, Chinese investors, Chinese miners, Hashcow, Huobi, mainlanders, Okex, precautions, regulatory risks, RMB, Wu Blockchain Photo credit: Shutterstock, Pixabay, Wiki Commons Denial: This article is for information only. It is not a direct offer or invitation to buy or sell, nor is it a recommendation or endorsement of any goods, services or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author shall be liable, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services referred to in this article.This week, Chinese Bitcoin miners Btc.top and Hashcow announced that they were halting their services in China, due to the country’s ban on cryptocurrency trading and initial coin offerings (ICOs). Btc.top, a mining pool operated by Bitmain, said that it would close its Shenzhen-based mining facility, which was responsible for 11 percent of the world’s Bitcoin mining activity. Meanwhile, Hashcow, another mining pool, said that it would shut down its Beijing-based mining center. The move marks the end of an era for China’s once-thriving crypto mining community, which has struggled to re-locate to friendlier countries, such as Canada, Iceland, and the U.S.. Read more about what happens if china bans bitcoin and let us know what you think.
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