Beijing-backed anti-mining activities continue to pick up pace in the Middle Kingdom, with key players appearing to be leaving the market and trading platforms like BitMart moving to blocking mainland China’s IP addresses – but some miners in the country have Industry not given up and even feel a new opportunity.
Yesterday, IT home reported, BitMart crypto platform announced that “everyone [Mainland] Chinese cell phone number or related account registration information indicating that users are “located in China” would have “limited” access to its platform, with transaction completion features still operational.
However, new transactions cannot be initiated from the mainland, while an attempt to transfer assets from locations on the mainland to its wallets would “lead to failure”.
The media company added that BitMart, which has around 5 million users, is backed by one of China’s largest blockchain investors, Shanghai-based Fenbushi Capital.
Sina reported that WeChat accounts linked to listed mining company Shenzhen Internet Online Cloud Computing have been suspended, while the company’s shares also ceased trading after fiscal 2020 financial statements were not released.
The media company added that it is struggling to contact the company through official channels that appear to be unresponsive.
And Per Time Weekly, so-called “joint mining” companies, were also hit hard by the recent raid. A twist on traditional cloud mining models, these ventures allow participants to mine remotely by purchasing hashpower from third-party providers, with fees only being charged when the initial cost of purchasing the miners’ equipment is covered. This includes the B.TOP service operated by the mining pool BTC.TOP, while the same media company claimed that at least three such joint mining companies are known to have ceased operations entirely.
Much of the Chinese mining community appears to have been taken by surprise by the recent raid. Some have hoped to move from heavily coal-dependent regions like Inner Mongolia Autonomous Region (IMAR) to other parts of China, where cleaner energy solutions like hydropower are more common.
But there are suggestions that miners are now all tarred with the same brush, quoting one miner as follows:
“Sichuan Province has put forward a number of crypto-related regulatory directives on many occasions in the past, but the actual impact on the industry has not been significant. This time is different. “
Sichuan is believed to have a sizeable surplus of hydropower, which miners said was “greener” and “more open to politics.”
But even Sichuan seems interested in keeping miners out, so effective has Beijing’s message on the matter been in recent weeks.
Regardless, according to Time Weekly, “multiple” chat app groups associated with mining and equipment sharing are still up and running, and there’s no shortage of new would-be miners looking for new places to go keep an eye out for stores setting up – and make inquiries to buy rigs.
One person who started crypto mining two weeks ago told the media company:
“We are currently in a phase of policy adjustment. Mining folks dare not speak about it publicly, but I think now is the best time to get into the industry. So many mining machines change hands, and [setup] The prices are getting cheaper. “
However, warned an experienced miner who stated that “mining is no longer suitable for beginners because the regulations have become stricter”.
Elsewhere, the MXC crypto exchange announced last week that it was blocking “new users” access to “some of” [its] Services ”, including margin trading and futures“ from certain specific countries and regions ”. MXC did not indicate which areas would be affected.
The platform swore “Adhere to the evolving policies and regulations of each jurisdiction to create a safer environment and preserve the well-being and assets of our users.”