Ethereum News: IBC Group, a private equity firm focused on blockchain technology, has shut down all Bitcoin and Ethereum mining facilities in China in response to the government’s decision to limit cryptocurrency mining. The company does not seem worried about this and believes that this will lead to positive developments in the cryptocurrency market.
IBC has more than 1500 employees in dozens of Chinese cities and has made significant investments in more than 4000 different blockchain projects. IBC said in a press release that they have staked around 100,000 ETH, which played an important role in the launch of Ethereum 2.0.
More than 90% of Bitcoin mining in China is thought to have stopped after the People’s Bank of China (PBOC) warned Chinese commercial banks that they would not be able to process cryptocurrency-related transactions. The most striking point is that China contributes a large part of the processing power used by Bitcoin. The PBOC further stepped up the pressure by making statements against the speculative trading of digital assets.
Khurram Shroff, President of IBC Group, does not see these developments negatively. Shroff made the following comments in the press release:
“Although the pressure in China is a temporary inconvenience, we believe the different locations of the mining facilities are great news for the rest of the world. Relocating mining operations outside of China will be a great opportunity for Canada. The Toronto Stock Exchange recently listed the world’s first Bitcoin ETF, so the country is already ahead of the curve in terms of popularizing cryptocurrencies.”
IBC Group said it has moved its employees to multiple countries around the world, one of which is Canada. The company moved its headquarters from Dubai to Toronto in May. In the company’s press release, Khurram said China’s crackdown on cryptocurrencies is a “huge opportunity” for Canada.
Canada’s status as a potential global hub for cryptocurrencies is not new. The country is known for very low energy costs, especially in the province of Quebec, which benefits from reliable hydropower. Morgan Stanley analysts even said Canada was among the “most attractive regions for mining” in 2018.