As per an announcement by the SEC, the noticeable crypto-mining company BIT’s subdivision running on its mining pool will exit China. All the respective operations, as well as connections with the market working in mainland China, will be ceased by BTC.com. This move has been taken by the firm after immense regulatory pressure was put on it along with several other crypto firms by the authorities. It has been declared that the official site of the division will not register any of the new consumers and even stop the accounts related to the already registered local customers from this year’s 15th October.
The cryptocurrency’s exodus from China
Although this advancement may have some bad effects on the financial statements given by the company, it considers that more international progress exists in the store. The subsidiary features the operation of the data center, the mining of cryptocurrency, and mining pools. Additionally, mining services are also provided by the online venue for virtual currencies, including LTC, ETH, BCH, and BTC. Recently, some other companies having such activities related to crypto-mining also exited mainland China. Most notably, SparkPool (the prominent mining pool based on Ethereum blockchain) halted the mining operations thereof within Chinese territory on 30th September of 2021.
As per the ranking, the SparkPool is considered to be the second-largest pool for Ethereum mining across the globe. The company informed its consumers about the regulatory developments to do its best in having full compliance with the regulatory requirements. Moreover, on 14th October 2021, AntPool (a pool for Bitcoin mining) put a closure on the IP access to its platform throughout mainland China. Again for this time, the compliance reasons have been pointed out by the firm.
A continuous crypto crackdown by Chinese authorities
The news about the crypto crackdown of China is seen regularly in newsfeeds. During the later phase of July, the central bank of China reiterated the plans thereof for continuous pressure over the industry of cryptocurrency. Following this announcement, the government of China ceased the well-known sites having linkage with cryptos such as CoinGecko and CoinMarketCap. Previously this month, the government added the mining of crypto to the negative list thereof, by which the industry is blacklisted from making foreign investments. To maximize the level of compliance, the government is exercising crackdowns. Nonetheless, simultaneous to these crackdowns, significant crypto growth has been witnessed in the places like Texas and New York.