SHANGHAI, May 26 — A crackdown by Beijing is rapidly accelerating a shift in focus by makers of machines that ‘mine’ cryptocurrencies like bitcoin from China to North America and Central Asia as Chinese clients face an uncertain future. China’s central government vowed to clamp down on...
Wednesday, 26 May 2021 09:34 PM MYT
The makers of the equipment miners use, many of them Chinese, say they are now looking elsewhere for growth. Illustrating the trend, Shenzhen-headquartered BIT Mining Ltd said in a statement on Monday that it had entered into a deal with a Kazakhstan-based company to jointly invest in a crypto mining data centre in the central Asian country.
If China quickly loses its crypto computing power, foreign miners will benefit, Alex Ao, vice president of Innosilicon Technology, a chip-designer and crypto mining rig maker, said. “The strategy should be to strenuously develop markets such as Kazakhstan, Canada, and North Europe, where energy resources are abundant and cheap, while regulations are clear and predictable,” Lu told Reuters.Although China’s northern region of Inner Mongolia, a major mining centre, published draft rules yesterday to root out the business, other major mining centres have yet to issue their own, after last week’s salvo from a State Council committee led by Chinese Vice Premier Liu He.