⏳ Final hours! Save up to 55% OFF InvestingProCLAIM SALE

Bitcoin Miners Are Shifting Outside China Amid State Clampdown

Published 2018-01-05, 01:59 a/m
© Bloomberg. A technician exits a warehouse containing bitcoin mining machines at a mining facility operated by Bitmain Technologies Ltd. in Ordos, Inner Mongolia, China, on Friday, Aug. 11, 2017. Bitmain is one of the leading producers of bitcoin-mining equipment and also runs Antpool, a processing pool that combines individual miners from China and other countries, in addition to operating one of the largest digital currency mines in the world.
BTC/USD
-

(Bloomberg) -- As China’s crackdown on cryptocurrencies broadens to bitcoin miners, some of the industry’s biggest players are already shifting operations overseas.

Bitmain, which runs China’s two largest bitcoin-mining collectives, is setting up regional headquarters in Singapore and has mining operations in the U.S. and Canada, Wu Jihan, the company’s co-founder, said in an interview. BTC.Top, the third-biggest mining pool, is opening a facility in Canada and ViaBTC, ranked No. 4, has operations in Iceland and America, their founders said.

Chinese policy makers, who last year banned initial coin offerings and called on local exchanges to halt virtual currency trading, outlined new proposals this week to discourage bitcoin mining, a computing process that makes transactions with the cryptocurrency possible. Officials plan to limit the industry’s power use and have asked local authorities to guide miners toward an “orderly” exit from the business, according to people familiar with the matter.

While the moves are unlikely to have a noticeable effect on bitcoin transaction speeds, they could reshape the cryptocurrency mining industry. Miners have until recently flocked to China because of the country’s inexpensive electricity, local chipmaking factories and cheap labor. They’re now looking for alternatives.

“We chose Canada because of the relatively cheap cost, and the stability of the country and policies,” Jiang Zhuoer, founder of BTC.Top, said in an interview. He also considered locations in Iran and Russia.

Bloomberg News reported the Chinese government’s planned curbs on bitcoin mining Wednesday. The People’s Bank of China didn’t respond to faxed requests for comment.

Bitcoin, which surged 15-fold last year, was little changed on Friday. It’s up about 5 percent in 2018.

To contact Bloomberg News staff for this story: Steven Yang in Beijing at kyang74@bloomberg.net.

To contact the editors responsible for this story: Jessica Zhou at jzhou75@bloomberg.net, Michael Patterson, Sam Mamudi

©2018 Bloomberg L.P.

© Bloomberg. A technician exits a warehouse containing bitcoin mining machines at a mining facility operated by Bitmain Technologies Ltd. in Ordos, Inner Mongolia, China, on Friday, Aug. 11, 2017. Bitmain is one of the leading producers of bitcoin-mining equipment and also runs Antpool, a processing pool that combines individual miners from China and other countries, in addition to operating one of the largest digital currency mines in the world.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.