China’s recent decision to propose to ban cryptocurrency mining and intra-country trading operations has had a widespread impact on the cryptocurrency markets.
As the cryptocurrency market continued to suffer losses, and its valuations reached their lowest level in 3 months.
As Beijing ramps up its regulatory efforts in the crypto space, local bitcoin miners in China have begun to suspend their businesses in the home country.
This put further downward pressure on Bitcoin and the cryptocurrency space in general.
As we know, China alone accounts for 70% of the total cryptocurrency mining market worldwide.
Thus, if Chinese miners decide to shut down their machines, even for a short period, the effects of that could be far-reaching.
Yesterday, Sunday, May 23, “Huobi Mall”, the subsidiary of the parent company “Huobi”, announced that all its services have been suspended.
“Huobi Mall” plans to move its mining equipment to an overseas market outside China.
On her Telegram channel, she announced the following:
We are engaging with overseas service providers to pave the way for mining rig exports in the future.
China loses cryptocurrency mining to North America and Europe:
After the Chinese regulatory crackdown, BTC.TOP, one of the largest cryptocurrency mining pools, announced the suspension of its business in China.
Mr. Jiang Zwer said that they are planning to move operations to North America, according to Reuters .
In the long run, nearly all Chinese mining platforms will be sold overseas, as Chinese regulators crack down on mining.
Referring to the ban imposed by China in 2017 on trading cryptocurrencies, Jian told:
Four years ago, China was the world leader in cryptocurrency trading before the ban.
Same with mining, China will lose the computing power of foreign markets as well.
Jiang expects China to lose business in favor of the European market and North America.
The mining company HashCow owns approximately 10 mining sites in the dominant mining areas of China such as “Sichuan” and “Xin Jiaming”.
Although HashCow has pledged to comply with the new regulations, the company has stopped purchasing new mining hardware and refunds investors who have recently applied for computing power but have not started buying yet.