The increasing animosity shown by the Chinese government toward the cryptocurrency industry has caused mining operators to start looking for a new country to locate their mining equipment, while also suspending their custodial services for the time being
Last week, the Chinese government announced the reiteration of a ban that would prevent financial institutions to get involved with any cryptocurrency-related services, just to some days later say that it would also be incrementing its oversight and “cracking down” on crypto mining activities in the country.
- China’s cryptocurrency mining industry accounts for as much as 70% of the world’s total hash rate, according to Aljazeera.
- However, this dominance over the crypto industry has not stopped the Chinese government from taking an unfriendly stance toward crypto, despite showing a more favorable attitude toward blockchain technology.
- Huobi Mall, a subsidiary of the crypto exchange Huobi, announced on Sunday that it would be suspending its custodial services while also contacting overseas service provides as it starts planning the export of its mining rigs.
- Similarly, BTC.TOP announced that it would be suspending all its business in the Asian country as a result of the increasing regulatory risks, which has prompted the company to prioritize North American operations.
Other companies have shown a different approach as in the case of HashCow, another cryptocurrency mining operation, said that while it would be complying with government regulations, it would be suspending the purchase of new Bitcoin rigs and providing refunds to investors who had yet to start mining.
Will Crypto Mining be Banned in China or Just Regulated?
However, the position of the world’s second economy’s government toward cryptocurrency continues to become more restrictive despite the country’s dominance in the crypto market.
In the past,…