China’s recent decision to ban crypto mining and trading transactions within the country has had a huge impact on crypto markets. On Sunday, May 23, crypto market valuations reached a 3-month low.
With the acceleration of Beijing’s regulatory efforts in the crypto space, China’s local Bitcoin miners have also begun to suspend operations in their home countries. This put downward pressure on BTC and the general crypto space. As we know, China alone accounts for 70% of the total crypto mining market worldwide. Therefore, if Chinese miners decide to shut down their Rigs even for a short time, the effects can be far-reaching.
In light of these developments, some Chinese crypto exchanges such as OKEx and Huobi have begun to limit their services to local Chinese investors. On Sunday, May 23rd, Huobi Mall, a subsidiary of crypto exchange Huobi, also announced the suspension of all services to Chinese investors. Huobi Mall plans to move its rigs to an overseas market outside of China. The organization made the following statement in a Telegram community:
“In this process, we are communicating with overseas service providers to pave the way for future mining rig exports. Don’t worry, be calm. ”
China Loses Crypto Mining to North America and Europe
BTC.TOP, one of the largest crypto mining pools, also announced the suspension of its business in China, citing regulatory pressures. According to Reuters, founder Jiang Zhuoer said they are planning to move the operations to North America.
“In the long run, almost all of China’s crypto mining rigs will be sold overseas, as Chinese regulators have stopped mining in the country.”
Referring to China’s ban on crypto trading in 2017, Jiang added that four years ago, China lost its ability to be a global leader in crypto trading because of this:
“Eventually, China will lose its crypto computing power to foreign markets”
Jiang expects China to lose this line of business to the European and North American market. Crypto miner HashCow; It has approximately 10 mining sites in China’s dominant mining regions such as Sichuan and Xinjiang. While this miner has promised to comply with the new regulations, the new Bitcoin rigs canceled their purchases and recently announced a refund to investors who had ordered computing power but had not yet begun to buy.
On Sunday, the BTC price dropped another 10% following Chinese pressure. Today, it is trading at around $ 36,200 at the time of writing, increasing around 5%.