IBC Group to Shutdown Bitcoin and Ethereum Mining Operations in China

Divya  |  Jul 5, 2021

In response to China’s ongoing crackdown against cryptocurrencies, blockchain consultancy firm, IBC group has decided to terminate its mining operations in the country. In a press release issued on Monday, the company declared that it will shutter its Bitcoin and Ethereum mining facilities in China, as it looks to relocate its staff to various new locations.

IBC Group to Shift Mining Facilities From China

IBC Group’s chairman Khurram Shroff stated in the press release that his company is exploring opportunities in Kazakhstan, UAE, Canada, the USA, Iceland, and multiple South American countries to shift its staff members. 

The company has a considerable presence in the Chinese crypto market with more than 1,500 people employed at its facilities that are spread across 40 cities. To date, IBC has invested in over 4,000 different blockchain projects, including a stake of 100,000 Ether(ETH) in the Ethereum 2.0 upgrade.

Earlier in May, Chinese authorities unveiled significant measures to curb crypto trading, as they banned financial institutions and payment companies from providing crypto-related services. Since then, the country’s anti-crypto stance became progressively harsher as it sought to outlaw mining operations in several provinces such as Qinghai, Sichuan, and Xinjiang. More recently, the People’s Bank of China(PBOC) joined authorities in their criticism of speculative trading of cryptocurrencies, further reiterating the nation’s hardline position on digital assets.

As per some estimates, the crackdown has led to the closure of 90% of China’s Bitcoin mining facilities. This is especially noteworthy since the country accounts for 70% of the world’s crypto supply.

IBC Views Mining Crackdown As Positive Development

Despite the decline in hash rates, several miners see the Chinese crackdown as a positive development for the industry. In a recent interview with Yahoo Finance, Peter Smith, CEO, and Co-Founder of Blockchain.com suggested that the move could result in diversification of mining operations, and lead to the accelerated growth of large mines across the US, Europe, and other locations.

MicroStrategy CEO and Bitcoin Evangelist, Michael Saylor told Bloomberg Technology that China’s making a “trillion-dollar mistake” by forcing out miners.

Shroff echoed similar sentiments in his assessment and said, “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.” 
He further added, “As a company headquartered in Toronto, the fastest growing tech hub in North America, we feel perfectly positioned to take advantage of these changes. A shift of crypto mining operations out of China will be a huge opportunity for Canada.”

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