IBC Group Discontinues Bitcoin Mining in China

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The blockchain investment firm is moving its Bitcoin and Ethereum mining assets to new locations, including Canada, the United Arab Emirates (UAE) and Kazakhstan

The People’s Bank of China (PBOC) further fueled negative sentiment in the crypto market when it ordered the country’s financial institutions last month to halt trading, clearing and settlement of cryptocurrency transactions.

The crackdown also included the closure of crypto mining facilities in Sichuan and other provinces. It is estimated that over 90% of Bitcoin mining capacity in China has been shut down. Since China provided the bulk of the network’s computing power, it had a strong effect, leading to a 50% drop in the Bitcoin hashrate.

The result was a kind of miner exodus: People now want to migrate to more crypto-friendly areas.  So does blockchain investment firm IBC Group. Yesterday, the company announced the closure of all crypto mining activities in China.

As for our own crypto mining activities within the IBC Group, we are closing all of our Bitcoin and Ethereum mining facilities in China and relocating them and their employees to several new locations worldwide, including the UAE, Canada, the United States, Kazakhstan, Iceland and various South American countriessaid Khurram Shroff, Chairman of IBC Group.

The firm has so far made investments in more than 4000 blockchain projects and staked about 100,000 ETH to promote the adoption of Ethereum 2.0. More than 1500 employees were involved in the significant crypto mining activities in over 40 cities.

However, Shroff was positive about the future of mining: “While we see the strict Chinese measures as a temporary inconvenience, diversifying mining plant locations is good news for the rest of the world. As a company headquartered in Toronto, the fastest growing tech hub in North America, we feel perfectly positioned to benefit from these changes.“

The company was previously headquartered in the United Arab Emirates, but recently relocated to Canada. „The relocation of crypto mining activities from China is a great opportunity for Canada. The Toronto Stock Exchange recently listed the world’s first Bitcoin ETF. So, in terms of mainstream cryptocurrency enforcement, the country is already a trailblazerShroff explained.