During the week, the cryptocurrency community is focusing on the Financial Stability Board of China and the country, stating that it aims to tighten up on the bitcoin mining sector. Following the statements of Chinese officials and some cryptocurrency businesses leaving services in the region, officials from some of China’s biggest bitcoin mining companies discussed the situation openly.
CEO of Btc.top: ‘If China takes regulatory action against crypto mining, major Chinese manufacturers will sell overseas
The million-dollar question right now is whether the Chinese government will continue to clamp down on the crypto industry. It all started when Reuters published Report good On May 18, it said: “China bans financial, payment institutions from cryptocurrency business.” Essentially the news publication said that China’s “three financial industry associations” told financial institutions and payment processors “not to offer any crypto-related services.”
Services include “reopening the ban on account opening, registration, trading, clearing, settlement and insurance, 2017”, Reuters further noted in a Follower lecturer next day. Then five days ago, regional reports discussed the Bitcoin mining sector by China’s 51st meeting of the Central Financial and Economic Affairs Commission and the organization’s director Liu He. Again, the Economic Affairs Commission and the Financial Stability Board said it would take action on illegal bitcoin mining and Monitor sector.
After the Economic Affairs meeting and the statements of BTC.top CEO Liu He Jiang Xuor Talked about the situation. “According to the minutes of the China Financial Stability Board:” We completely stop and control the financial risk…. We will crack down on bitcoin mining and crypto trading activities to prevent personal risks from spreading on a social scale. ” said.
“From there, we can see that the main spirit of the meeting is to ‘prevent and control financial risks’, so as to prevent social capital from flowing into the crypto mining sector thereby transferring risk from individuals to the entire society.” Continuous. “In other words, personal mining is always allowed and as long as you are responsible for your own risk and profits, while mining can be driven by financial capital [forbidden]. “
Zuor compared this year’s minutes to what was said during the definition of minutes announced back in 2013, which Zuor reiterated. The Btc.top CEO spoke about September 4, 2017, the day the world saw China ban early coin offerings (ICO) and then shut down domestic crypto exchanges. As far as China’s bitcoin miners are concerned, Zuor says the guidelines may cause some harm, but it may not be as bad as most people think.
“vast [datacenters] And major experienced miners may suffer a significant loss this time, while the entire bitcoin network will be as flexible as ever, “Zuor Stressed on. “The worst case scenario would be this: big datacenters shut down and we go back to the old days in 2014–15. Small miners install many miners at home; Medium miners set up dozens of miners in a warehouse or a few hundred miners in a factory; Veteran miners find a small remote hydroelectric power plant and find a few thousand miners there. “
Btc.top executive said:
Finally, bitcoin mining will continue to exist normally, except mining in China will be shifted from industrial-sized datacenters to domestic miners, small or medium-sized miners. The entire bitcoin network will always be strong [if] Its hash rate [declines] By 50%.
Executive of Abang, Canaan, and Innosilicon discuss alternative strategies and international locations
In addition to the CEO of Btc.top, officials at several other Chinese mining firms and rig manufacturers reported about the reported action. Reuters Reported On May 26, Chinese ASIC manufacturers “are now looking elsewhere for development.” Alex Ao, vice president of Innosilicon Technology, reported that “foreign miners will benefit.” “Places like North America and Central Asia have advantages in terms of power supply and policy support,” the AO elaborated.
In another statement, Hangzhou-based Ebang International commented that “domestic customers will go abroad to me.” “Mining machines will still be in short supply,” a spokesman for Abang said. Edward Lu, senior vice president of Canaan Inc., gave his opinion about the situation in China. “The strategy should be to develop markets such as Kazakhstan, Canada and Northern Europe, where energy resources are abundant and cheap, while regulations are clear and predictable,” Lu said.
Meanwhile, Shenzhen-based firm Bit Mining Announced It is planned this week to build a 100 MW bitcoin mining data center in Kazakhstan. Formerly known as 500.com, Bit Mining owns Btc.com and mining rig manufacturer Bee Computing. Similar to Bit Mining, both Btc.com and Bee Computing are based in China and may face stricter regulations.
The Sichuan Energy Regulatory Office also revealed this week that it would gather on June 2 to discuss bitcoin mining. The meeting is required by the National Energy Administration of China, a. According to Regional report.
What do you think about the comments of Chinese mining equipment manufacturers and mining farm operators? Tell us what you think about this topic in the comments section below.
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