China’s firm stance to eradicate traces of Bitcoin-related activities in the country is causing a major exit of miners in their numbers.
The 5th largest mining operator BTC.com is withdrawing from the Asian economic power after its power supply was cut off. The situation has sparked a tragic decline in Bitcoin’s hashrate and the overall outlook of the crypto market.
The mining pool revealed that it has completed the first round of its migration to Kazakhstan successfully. The decision and eventual migration were triggered by a state grid notification announcing a ban of one of its data centers in Sichuan. The data center was a major contributor of revenue to the pool, amounting to three percent in May.
BTC.com contributes largely to global Bitcoin mining, validating about 10.4 percent of BTC blocks. The company is under the operations of Bitdeer and Bitmain and was acquired by a lottery service in China 500.com in February. BTC.com was a brainchild of Jihan Wu and its growth so far has been exponential.
Chinese Authorities Wants the Public to Report Miners Still in Operation
To ensure compliance with the crackdown, regional authorities in Inner Mongolia and other areas have urged the public to report miners that are still in operation.
A dedicated hotline is available to the public to report illicit mining operations. Several top-tier exchanges in China including Huobi and BTC.TOP have halted operations.
China sets the pace of the arrest of Bitcoin transactions for other nations. Other nations are rapidly picking the hint and gradually pointing out the negatives of crypto mining like climate concerns and energy consumption. This narrative is in play in Kyrgyzstan, Iran, and the Caucasus.
Global authorities are also gearing to set up strict regulations on the handling of cryptocurrencies. The United States Securities and Exchange Commission is believed to be working on these policies, which is likely the reason it is yet to approve a Bitcoin Exchange Traded Fund (ETF).