Cryptocurrency Prohibition in China has Estranged Most Investors

Cryptocurrency Prohibition in China has Estranged Most Investors

The increased enforcement of crypto regulations in China continues to force major investors to relocate from China to other nations around the world. As a result of the news on China’s prohibition of the crypto industry, IBC Group — an investment firm based in Dubai — is ready to stop its ETH and Bitcoin mining processes carried out in China. According to Khurram Shroff, the iMining Chief Executive Officer and the head of IBC Group, the spreading of BTC mining facilities to different places due to the strict regulations in China is beneficial to other nations.

Based on information gathered from various sources, major mining activities of the IBC Group are done in China, however, the group plans to disperse the mining processes to different countries, such as the U.S., Canada, Iceland, and many others. Recently, the group moved its head office to Toronto — a city in Canada.

Reacting to the stringent policies on cryptocurrency, specifically on the mining facilities, Shroff opined that the hurdle is transient, adding that the dispersion of the mining processes to different places is an advantage to other parts of the world. According to him, Canada will have more to gain due to the relocation of the mining processes away from China. He noted that regarding mainstreaming cryptos, the Toronto Stock Exchange recently put up a BTC ETF making it the first to do so in the whole world, making the nation to be ahead of others.

Due to the frequent and huge electrical power loss in the Chinese mining center of Xinjiang three months ago, the Chinese government focused its regulation on energy usage in the cryptocurrency mining ecosystem. This resulted in a more stringent regulatory control by the government, leading to a great inconvenience in the crypto transactions. According to specialists in the crypto platform, although the prior reorganization will be strenuous and demanding, decentralization of cryptocurrency will be facilitated by the movement of investors away from China.

Mike Novogratz of Galaxy Digital had seen a future tremendously positive experience in the BTC business. At the same time, Brandon Arvanaghi, the past security engineer of Gemini, emphasized that the strict enforcement of regulation does not mean a failure, it actually implies that BTC is progressive.
 


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