IBC Group announced today that it has decided to shut down its Bitcoin and Ethereum mining operations in China amid the country’s recent crackdown on crypto mining companies in the region.
According to an official announcement, IBC Group has decided to move its staff to new locations including Iceland, Kazakhstan, UAE, Canada, the US and different South American countries. Earlier this year, China’s central bank warned commercial banks against cryptocurrency payments.
Commenting on the latest announcement, Khurram Shroff, the Chairman of the IBC Group, 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. As a company headquartered in Toronto, the fastest growing tech hub in North America, we feel perfectly positioned to take advantage of these changes.”
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“As far as our own crypto mining operations, within the IBC Group, are concerned; we are closing down all our Bitcoin and Ethereum mining facilities across China, and moving our staff to multiple new locations globally, including UAE, Canada, USA, Kazakhstan, Iceland and various South American countries,” Shroff added.
Across the crypto market, Bitcoin mining remained the hottest topic for discussions in the last few weeks. China’s recent crackdown and crypto restrictions sparked uncertainty among Bitcoin and Ethereum miners in the country. According to the latest estimates, nearly 90% of crypto miners in China have closed their operations. China accounted for nearly 50% of the global hash rate in 2020. However, the latest regulations by the Chinese government have forced regional miners to shift their operations to crypto-friendly countries.
In May 2021, Michael Saylor, CEO of the US-based business intelligence firm, MicroStrategy, hosted a meeting between Tesla CEO Elon Musk and a group of leading Bitcoin miners in North America. Musk termed the meeting as a ‘promising’ development and expressed his optimism regarding the use of renewable energy sources in Bitcoin mining.