The activities of Chinese bitcoin miners are being disrupted quite seriously after a number of crypto firms put a stop to their operations in the country. This is just another in the series of setbacks for Bitcoin, as blow after blow is dealt to the crypto market, resulting in major turmoil that wasn’t seen since the start of this year. Some of the companies that shut down their operations include an affiliate of Huobi Exchange, Huobi Mall, as well as BTC.TOP. The firms cited heavy scrutiny and regulations aimed at Bitcoin trading and mining activities by Beijing as the primary reason behind their decision to close down their operations.
The cryptocurrency mining sector in China is a booming one, with the country responsible for almost 70% of the global supply of digital currencies. According to an announcement made last Friday, the crypto mining sector was explicitly targeted directly for the first time by a State Council Committee that was headed by Vice Premier, Liu He. Mining companies that have now halted their operations in Beijing are shifting towards expanding in other global markets. On Sunday, Huobi Mall issued a statement in which it announced that it was getting in touch with overseas service providers for exporting mining rigs in the future.
Meanwhile, Chinese operations were suspended by BTC.TOP, after which they will be shifting their focus primarily towards their North American crypto mining activities. Regulatory risks were also cited by the firm as the primary reason behind their decision. China’s dominance in the world of crypto trading had already been eradicated in 2017 when Beijing stopped crypto exchanges from operating in the country. According to BTC.TOP’s founder, Jiang Zhuoer, China’s hash dominance will also be lost soon to other markets, such as Europe and the United States. Another crypto mining company, HashCow, which has 10 mining sites in China, said that it wouldn’t be purchasing any more mining rigs.
The company also said that it would also be issuing a refund to investors who had ordered computing power but hadn’t begun their mining activities. Bitcoin suffered from a crash after the decision of Chinese firms to halt their operations in the country. In mid-April, the token had hit an all-time high of $63,500, but it lost almost 50% of its value. It lost another 17% on Sunday after the announcement from China, before making a slight recovery. But, it still remains under $40,000.
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However, the extreme volatility in the crypto market will not come to a halt any time soon. Regulators in the United States and other areas are still wondering how cryptocurrency trading will be regulated for protecting investors and curbing money laundering. Additional regulations in the US are also expected, after the Chairman of the US Federal Reserve, Jerome Powell announced that cryptocurrencies were a threat to financial stability, so they need more regulation. If any regulations are introduced, Bitcoin and the cryptocurrency market, in general, will take another big tumble, but it will eliminate some uncertainty from the overall equation.