Chinese mining companies, forced to stop working due to the cryptocurrency mining ban, are looking for new locations. The choice of many of them fell on several American states.
Mining farm owners in China are planning to relocate their operations to US states such as Texas, South Dakota and Tennessee. The Washington Post tells the story of a Chinese entrepreneur, Jiang Zhuoer, who became a multimillionaire a few years ago after launching cryptocurrency mining farms with 300,000 computing machines. Now he is considering the option of transporting equipment to Texas or Tennessee. Other miners are also considering Canada as an alternative location for their mining facilities. Jiang had to urgently remove tens of thousands of mining machines from several northern Chinese regions, including Inner Mongolia, where two dozen of his factories were located. This was preceded by a public campaign launched by local authorities. They urged local residents to call and report illegal mining of cryptocurrencies. “You know, they get very active when the hotlines open for denunciations.”
According to CNBC, citing a Chinese logistics company based in Guangzhou, a shipment of about three tons of bitcoin miners is ready to be shipped from China to Maryland, USA.
A ban on cryptocurrency mining has been introduced in several provinces and regions of China, which are Inner Mongolia, Xinjiang, Qinghai, Yunnan and Sichuan.
On May 21, top officials from the economic bloc in Beijing pledged to end mining and trading of bitcoins. That statement led to a sharp drop in global cryptocurrency prices.
In recent weeks, Chinese social media users complained about censorship over a number of cryptocurrency-related topics, and Chinese police announced it arrested of over 1,000 persons for cryptocurrency-related financial crimes. Yemu Xu, the co-founder of Bella Protocol, a crypto banking provider, said that Chinese miners also looked on countries like Iran and Kazakhstan to relocate their facilities. In the past year, interest has grown in countries that have not only cheap power but also “stable political regimes, mature regulation and better policy support.” “As a result, mining in countries like the U.S. and Canada have been picking up,” he said.