The leading tech-driven crypto mining company plans its exit from mainland Chinese markets amidst recent crackdowns.
According to a bulletin from the SEC, the prominent crypto mining firm BIT’s online mining pool subsidiary will leave China. BTC.com will cease its operations and interactions with the mainland Chinese market. The development comes as an act of compliance with local regulations.
The site will no longer register new users and close accounts of existing users in China from October 15, 2021. While this development may have adverse impacts on the company’s financial statements, it believes more international growth is in store.
BIT’s subsidiary focuses on crypto mining, mining pools, and data center operation. Moreover, the online portal provides mining services for digital currencies such as BTC, BCH, ETH, and LTC.
Recently, other firms with similar crypto-mining related operations also departed mainland China. Notably, top Ethereum mining pool SparkPool ceased mining operations in China on September 30th of this year.
SparkPool is the world’s second-largest Ethereum mining pool. The mining firm told users that the development is in an effort of “maximal [compliance] with regulatory requirements.”
China’s Continued Crypto Crackdown
News of China’s crypto-crackdown continues its regular appearance in newsfeeds. In late July the Chinese central bank reiterated its plans for continued pressure on the crypto industry.
Since this announcement, the Chinese government blocked major crypto-related sites including CoinMarketCap and CoinGecko. Earlier this month, it added crypto mining to its “negative list,” which blacklists the industry from foreign investments.
As a means of compliance with the Chinese government’s crypto crackdown, many businesses and individuals in the space are leaving. BTC.com and the others mentioned above are just some of the many with this fate. However, on the receiving end places like New York and Texas have seen an increase in crypto mining farms parallel to the Chinese crackdowns.
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BeInCrypto has reached out to company or individual involved in the story to get an official statement about the recent developments, but it has yet to hear back.