China’s latest ban on cryptocurrency activities is forcing companies to leave the country, and Bitmain is the next one to take such actions
Bitmain, the world’s number one manufacturer of Bitcoin mining machines, has revealed that it will no longer ship its miners to mainland China. This latest development comes following the ban on cryptocurrency service providers and activities in China.
The company announced the changes yesterday via its official WeChat account, stating that it intends to follow local regulations. As a result, the Chinese-based company said it will suspend domestic delivery starting today. However, it will still be delivering its mining machines to cryptocurrency miners in other parts of the world.
Earlier reports suggest that Bitmain is also looking to move its operations to outside Southern China due to the clampdown on cryptocurrency service providers by the government in recent months. Bitmain could be looking to move its operations to a more cryptocurrency-friendly country.
The suspension of delivery in China is not expected to affect Bitmain’s performance in the short term. The company’s sales in China have been declining over the past few months as the Chinese government cracks down on crypto mining activities.
Over the past few months, numerous provinces in China, including Anhui and Sichuan, have banned crypto mining activities, forcing miners to move to North America and Eastern Europe. North America has become home to some of the largest cryptocurrency mining farms in the world.
The push for using renewable energy to mine cryptocurrencies, led by the likes of Elon Musk and Michael Saylor, has made North America an attractive region for many miners. Bitcoin’s price has recovered since its dip in the second and third quarters of the year.
At the time of writing, BTC is trading above the $56,000 point, barely 13% down from its all-time high above $64,000. With the current market performance, many experts and crypto enthusiasts are optimistic that Bitcoin could top the $100,000 level for the first time in its history by the end of the year.