Following some stern warnings from some major trade associations and regulators in China, the two major exchanges, Huobi and Okkes, have stopped serving Chinese residents. Two bitcoin mining operations have also left the country on Monday, after halting specific services for residents of mainland China by two exchanges. Btc.top and Hashco have suspended services due to “regulatory risks”.
Crypto firms are leaving China
Two mining operations have revealed that specific services have been suspended for residents living in mainland China. The news comes after the recent announcement by Huobi and OKEX when companies announced later this week that specific services for Chinese citizens would be halted. Government announcements stemmed from China and the first warning was published on 19 May.
The last 48 hours have been crazy.
So what will happen and what has happened? Here are some preliminary thoughts:
1, this is the first time such a high-ranking member of the PRC has announced “tightening on bitcoin mining and trading”.
– Mustafa Yilham (@ Mustafa Yilham) May 23, 2021
A Reuters Report good It was claimed at the time that “China has banned financial institutions and payment companies from providing services related to cryptocurrency transactions, and has warned investors against speculative crypto trading.” However, the report was quickly dismissed as fear, doubt and uncertainty (FUD) by the greater crypto community. A few days later, more reports by Chinese officials to discuss Monitoring bitcoin mining Was published by various publications.
Then this weekend, the two exchanges Huobi and OKX Stopped serving For customers in mainland China. Huobi has terminated specific mining services such as selling mining rigs and cloud-hosting operations to Chinese residents. According to local reporter Colin ‘Wu’ Blockchain, Okx has “closed trading platform currency with RMB”. After the announcements by Okx and Huobi, bitcoin (B T c) Began to see some improvement in prices.
Btc.top and Hashco suspend services for Chinese residents, rumors of ‘cheap’ mining leakage begin to surface
Now two mining operations have been done Manifested Discontinuing services for Chinese residents as well. Btc.top, a large mining pool that is 1.7% of the global hash rate, detailed that it has “suspended its China business citing regulatory risks.” In a similar example, mining operation Hashco also elaborated that the firm would stop purchasing mining equipment.
Note to US and non-PRC based miners: Get ready for cheap rigs in the coming weeks from Chinese miners who are forced to shut down but cannot use offshore electricity
If you are interested, introduce yourself to the other party (some big miners have already contacted me)
– Dowie “Rag the Fiat” Van🪐🦖 (@DoveyWan) May 23, 2021
Since the initial bitcoin mining warning on May 21, overall B T c The hash rate has declined. At the time of publication, the hash rate is approximately 180 exhash per second (EH / s), as it was above the 158 EH / s area 24 hours ago. Other than recent statements by Btc.top and Hashco, no other mining operations have made any announcement about ceasing operations in China.
Meanwhile, Primitive Ventures’ founding partners Dowy Wan and Bixon’s Mustafa Yilham are speaking on the state of regulatory action in China.
“In [the] The last 48 hours, “Yilham Tweeted. “Chinese miners have already started picking up [the] The process of migration to other countries. A large amount of bitcoin mining machines will also be available for sale. “
What do you think about Btc.top and Hashco shutting down mining operations with Chinese residents? Tell us what you think about this topic in the comments section below.
Image credit: Shutterstock, Pixabay, Vicky Commons
Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell a product, services, or companies, or a recommendation or endorsement of a product, services, or companies. Bitcoin.com Does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is directly or indirectly responsible for any damage or loss in connection with the use or reliance of any of the materials, goods or services mentioned in this article.