Rabih Digital RW
  • 7 July 2022
  • Last Update 2 July 2022 06:30

Chinese Bitcoin Company Expelled Due to Government Regulations

China bans cryptocurrencies

Many Chinese crypto bitcoin companies or digital money are relocating their companies outside China due to government regulations on cryptocurrencies.

China prohibits financial institutions, banks or such institutions from offering cryptocurrency payments, ranging from registration or clearing trades and settlement of transactions.

The Chinese government is pressuring the digital/crypto currency trading market too speculatively and could violate the security of porperti or could disrupt the economic and financial order there according to 3 government industry agencies.

Shenzhen-based Chinese Bitcoin company BIT Mining said it had sent about 320 of its crypto mining machines to Kazakhstan, a central Asian country located close to China.

BIT Mining companies also immediately increased the number of their machines there to reach 2,600 crypto mining machines.

"We are accelerating overseas development for high-quality alternative mining resources"

Xianfeng Yang, CEO of BIT Mining said in a statement.

Chinese Bitcoin companies, cryptocurrencies, cryptocurrencies, cryptocurrencies

The relocation of the BIT Mining company comes after a local power company in Sichuan province cut off power.

China's Ganzhi Changhe Data Center also received a power cut notice as of June 19, the same day it was cut to BIT Mining.

Sichuan provincial authorities have also reportedly cut off electricity and shut down about 26 similar companies involved with crypto mining.

BIT Mining said it immediately invested about $35 million in the crypto mining data centers of Kazakhstan and the U.S. state of Texas.

It comes a week after the Chinese government's announcement to tighten regulations on trading bitcoin and other cryptocurrencies.

Logistics Company based in Guangzhou China also reported about a large logistics transfer to the U.S. containing crypto mining machine machines of about 3,000 Kg.

The surge in the movement of crypto companies and similar digital currencies is seen as the success of the Chinese government's program in tightening and ridding the country of mining and trading cryptocurrencies.

Several cities in the United States that are the migration destinations of crypto companies take a different tack,

They actually have the desire to take many crypto companies from China by showing their low energy levels.

Miami Mayor Francis Suarez told CNBC that his city could become a new energy hub for Chinese companies with abundant supplies of cheap nuclear energy.

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