Following efforts of the Chinese government to stop cryptocurrency mining operations in the country as part of measures to address its supposed environmental drawbacks, some industry giants are reportedly shutting their business down.
Media outlets Reuters and Bloomberg have earlier reported that Houbi is terminating its sale of crypto mining machines as well as mining hosting services in mainland China. Moreover, investment products and contracts will be temporarily unavailable for new users from several countries and regions with the affected areas yet to be revealed by the company.
On Monday, based on a statement on its Telegram Channel, Houbi said “custody business has been halted,” while assuring there is no need to worry as they are already contacting overseas service providers to facilitate exports of mining rigs in the future.
Crypto mining pool also halting business operations
Another company resorting to the same move is crypto mining pool BTC.Top, citing regulatory risks in coming to the decision to suspend its China business.
According to the pool founder Jiang Zhuoer’s Weibo, the company will now focus on conducting crypto mining business in North America in the future. According to BlockchainNews, Zhuoer said, “In the long term, nearly all Chinese crypto mining rigs will be sold overseas, as Chinese regulators crackdown on mining at home.”
He also said in his post that China will lose its crypto computing power to foreign markets, in reference to the ban of a crypto exchange in the country back in 2017.
China government defends stance
Despite China contributing 70% of the total global crypto supply through sheer cryptocurrency mining power, its leaders remained adamant that tight crypto regulation is necessary to crackdown on bitcoin mining and trading behavior to protect its financial system.
Earlier, the government has already banned financial institutions from being involved in any transaction that is digital currency-related.
Image courtesy of Cointelegraph News/YouTube
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