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IBC Group Terminates BTC & ETH Mining Operations in China

Nicholas Otieno   Jul 06, 2021 09:30 3 Min Read


   

IBC Group announced to terminate their crypto mining operation and facilities across China in response to the recent clampdown from the Chinese authorities. 

The company has conducted massive Ethereum and Bitcoin mining operations across China and has employed over 1500 people in over 40 cities across the nation.

Meanwhile, the group with investments in more than 4000 different blockchain projects in China has responded to the recent ongoing crackdown on crypto mining.

However, the company has decided to shut down all its Bitcoin and Ethereum mining plants. It now plans to move its operations and its employees to multiple new locations globally, including Iceland, Kazakhstan, the United States, UAE, Canada, and various South American nations.

In an interview with Yahoo Finance, Khurram Shroff, the prominent ‘Arab Whale’ and the chairman of the IBC Group, said that: “We believe that while the Chinese crackdown is a temporary inconvenience, the diversified location of mining facilities is great news for the rest of the world."

Khurram stated that the IBC Group is perfectly positioned to take advantage of such changes. He further revealed that the firm headquartered in Toronto is the fastest-growing tech hub in North America.

He stated that a shift of crypto operations out of China would be a significant opportunity for Canada. He also disclosed that the move by the Toronto Stock Exchange to recently listing the world’s first Bitcoin ETF is evidence that the country is already ahead of the curve in terms of mainstreaming crypto tokens.

Meanwhile, Peter Smith, the co-founder and CEO of Blockchain.com and Michaël Saylor, the CEO of MicroStrategy software company, also had a conversation with Yahoo Finance.

Smith stated that he believes that China’s crackdown on crypto mining is a good thing because the action would help diversify mining operations across the globe and accelerate the construction of huge mines in Europe, the United States, and other various locations.

On the other hand, Saylor said that he believes China is making a big mistake as it is set to lose a trillion-dollar revenue. It is supposed to benefit from hosting various cryptocurrency mining operations in the country.

China Wiping Off Billions Dollar Market

On May 19, China announced an institutional crackdown on crypto mining when the central bank (the People’s Bank of China – PBOC) informed all local banks that they could not engage in any crypto-related activity. China’s authorities clarified their decisions to close down crypto mining and trading, citing the need to control financial risks. 

Recently, the central bank also made a statement against speculative trading of cryptocurrencies, thus further intensifying the crackdown. Data reveals that more than 90% of Bitcoin mining in the country has been shut down. The impact is so huge as the country, which once contributed a major share of the processing power used by Bitcoin mining, is set to lose billions of dollars’ market.

 

 

 

 

 

 


Image source: Shutterstock

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