Diversification of Bitcoin mining centers due to the crackdown in China is good news for Canada. This view was expressed by Huram Shroff, head of the Dubai-based investment firm IBC Group, according to the press release.
‘The relocation of mining operations from China will be a huge opportunity for Canada. The Toronto Stock Exchange recently registered the world’s first Bitcoin ETF, so the country is already ahead of its rivals,’ he noted.
IBC Group plans to cease mining Bitcoin and Ethereum in China after recent bans and relocate mining centers to the UAE, the United States, Canada, Iceland, Kazakhstan and various South American countries. The company previously moved its headquarters to Toronto.
On May 18, journalist Colin Wu reported that three associations under the People’s Bank of China issued a joint notice, prohibiting companies from supporting cryptocurrency-related businesses.
On May 21, Liu He, Vice Premier of the State Council of the PRC, during a speech at the Financial Stability and Development Committee, stated that Chinese authorities take measures against digital asset mining and Bitcoin trading.
Subsequently, Xinhua News Agency criticised digital gold and its mining methods. Within a month, authorities in several provinces ordered miners to cease operations. Among them: Yunnan, Sichuan, Qinghai, Xinjiang and Inner Mongolia.
In late June, Bitmain representatives at a client meeting in Chengdu, the capital of Sichuan Province, offered assistance with relocation abroad.
Galaxy Digital founder Mike Novogratz called the exodus of miners from China ‘a major plus’ for the cryptocurrency industry.
MicroStrategy boss Michael Saylor noted that the restrictive measures against the Bitcoin mining industry in the PRC were a geopolitical misstep by the authorities. He called this a ‘one-trillion-dollar mistake’.
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