Bitmain To Stop Shipping Antminer Mining Machines To Mainland China

Bitmain To Stop Shipping Antminer Mining Machines To Mainland China

Bitcoin mining hardware manufacturer, Bitmain has halted the supply of mining equipment to mainland China. This decision is a result of the Chinese government’s regulations against cryptocurrencies and allied activities. The company states that overseas supplies will not be affected by the new policy. In line with the recent anti-crypto policies of the Chinese government, […]

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Shanghai Man: Crypto media closes, bad news just repeats, mining laws are beneficial?

With government officials trying to clean up the image of China prior to the start of the Winter Games, miners are leaving in droves and media group Bishijie has been forced to close down

This weekly roundup of news from Mainland China, Taiwan, and Hong Kong attempts to curate the industry’s most important news, including influential projects, changes in the regulatory landscape, and enterprise blockchain integrations.

It has now been two months since the crypto crackdown and subsequent enforcement began. Most new stories are now just the trickling down of earlier national policies being enforced at a provincial level. The latest example was from the Anhui provincial government, as it announced a set of measures to reduce energy consumption, with cryptocurrency mining listed among the culprits. Anhui is a small province east of Shanghai, more known for its scenic rural landscape and agriculture than its contributions to the economic development of China. It’s likely other provinces, particularly ones that rely on coal for energy, will have similar announcements over the summer as the central government pushes for a carbon-neutral future.

On July 13, Chinese mining pool giant Bit Mining announced it had raised $50 million for expansion outside of China. The company is listed on Nasdaq and operates BTC.com, which is currently a top 5 pool for Bitcoin, Bitcoin Cash, and Litecoin. This is another sign that Chinese mining companies aren’t giving up in light of the restrictions at home, instead choosing to relocate the data centers and mining machines abroad.

The disappearing industry left a trail of impressive photographs, including some published by Financial media Caixin. One image that grabbed the attention of social media depicted a woman who appeared to be an ethnic minority holding a bundle of mining equipment and power cables like a flower bouquet.

Going for gold?

Former Bitmain CEO Jihan Wu believes that the mining regulations will benefit the industry over the long-term, citing an improved public image and eradication of bad actors. It’s certainly a nice thought, but at the moment, China seems more intent on eliminating all actors, not just the bad ones.

With the upcoming Winter Olympics in February of 2022 looming, Beijing will have the perfect opportunity to show off clear blue skies and clean-energy industries. On top of that, China can showcase its state-of-the-art central bank digital currency, without the confusion stemming from more speculative digital assets that might appear to have similarities on the surface. Those with first hand memories of the 2008 Summer Olympics may also remember the strict regulation against technology and social unrest prior to that landmark event.

Lowest volumes in years

The impact is being felt by leading exchanges in China. Huobi’s BTC/USDT pair saw only 109K BTC transacted in the past week, the lowest weekly volume dating back to October of 2018. Global exchanges were also affected by slumping volumes, but not to the degree as these predominately Chinese exchanges. In today’s regulatory climate, there’s no doubt that exchanges proactive in decentralizing operations and risk are better poised to minimize damage from unfavorable policies.

Working together for compliance?

On July 13, the Nanjing Public Security Research Institute announced it was working with OKLink to combat money laundering. OKLink is a blockchain technology firm that has ties to OK Group, a company that used to manage leading exchange OKex. With exchange leadership under incredible scrutiny in 2021, there is no surprise in seeing attempts to placate regulators.

Abandoning ship

On July 15, cryptocurrency media company Bishijie announced it was shutting down after violating national laws against cryptocurrency. Bishije, which translates to Coin World, had enjoyed a lot of popularity in 2018, prior to the depths of the last bear market cycle. This recent bull cycle never saw it fully recover it’s previous position however, making this only a minor loss for the current cryptocurrency space. It remains to be seen whether other media platforms based in the mainland can survive this trying period of time.

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Shanghai Man: China retains mining control? Alipay’s ancient NFTs and Amber’s big raise

A look at miners shifting hardware overseas, Amber raises $100m, and Bitmain temporarily shuts down sales among dropping hashrate sales.

This weekly roundup of news from Mainland China, Taiwan, and Hong Kong attempts to curate the industry’s most important news, including influential projects, changes in the regulatory landscape, and enterprise blockchain integrations.

So low you’ve got to reach up to touch the bottom

This week in China felt like one giant mining-farm sized pile of FUD. This is usually a pretty good indication that a bottom is close to being in, but one can never be too sure when it comes to downwards volatility in cryptocurrency. Canaan, one of the largest mining companies in China, announced it was setting up shop in neighboring Kazakhstan. This is an ideal compromise for Canaan as it can remain close to China, while mitigating their regulatory risk. Reading between the lines, it seems like the plan is to mostly continue administration of the company from China while sending the machines overseas.

This would put a wrench in the works of the Bitcoin purists who believe that the crackdowns are a good way to break up China’s dominance in the mining industry. Just this week, a professor at a university in Singapore wrote in Chinese that the shift to a more decentralized network would be a good thing. This raised some eyebrows for the use of a made up word that translates roughly to ‘de-China-ization’, but the article holds even less weight when large mining companies like Canaan are able to shift physical equipment overseas but still remain in control of the governance.

Too big for postage stamps

On June 21, CNBC’s Beijing Bureau Chief Eunice Yoon posted on Twitter that a logistics company in Guangzhou was shipping 3,000 kilograms worth of mining hardware to Maryland, US. According to her claim, the price was $9.37 per kilogram. Some quick math reveals that the total cost would be less than the price of one Bitcoin, at least at the time of writing.

Bitmain lends a helping hand

Cointelegraph reported on June 23 that massive mining company Bitmain was suspending sales of mining hardware in a move to support the over-supplied secondhand markets. According to the article, sales of hashing power in China has seen a decrease of around 75% since the Spring. Bitmain is reportedly moving operations abroad as well, which would be a major move for the hardware manufacturing giant.

Mine-ami

Francis Suarez, everyone’s favorite Bitcoin-friendly mayor, was at it again on June 18 when he announced that all Chinese Bitcoin miners were welcome in Miami. The announcement was translated and posted on Sina Finance’s Blockchain Weibo account, which attracted over 53 comments from surprised netizens. Most of these user comments were negative in nature however, both towards Suarez and Bitcoin in general. A large portion of Weibo users hold cryptocurrencies in ill-regard, especially those that have been investing in the stagnant Chinese stock market.

Amber is the color of your energy

Amber, a cryptocurrency service provider based in Hong Kong, completed a Series B funding round worth $100m. Amber is well known among institutions for their financial services that include asset management, OTC services and lending.

Alipay’s foray into NFTs

Top payment processor Alipay continues to push its AntChain technology by partnering with the Dunhuang Research Academy to release 8,000 NFT skins. Dunhuang is famous for being an old silk road outpost and is home to Mogao Caves, a Unesco Heritage site. The NFTs featured artwork inspired by the cultural site and quickly sold out. AntChain is a private blockchain developed by Alibaba’s Ant Group.

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China’s Bitcoin Mining Rig Manufacturers Pressed by Demand, Advance Orders, Devices Sold Out

China's Bitcoin Mining Rig Manufacturers Pressed by Demand, Advance Orders, Devices Sold OutA regional report from China indicates that bitcoin mining rig manufacturers have seen a massive surge in demand since the price of the leading crypto asset skyrocketed. Companies such as Canaan Creative have placed significantly sized mining rig orders while other companies like Bitmain are completely sold out. Bitcoin Mining Rig Manufacturers Experience a Device […]
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Red Envelopes and BCH: Prominent Mining Execs Jiang Zhuoer and Jihan Wu Bolster Bitcoin Cash

Red Envelopes and BCH: Prominent Mining Execs Jiang Zhuoer and Jihan Wu Bolster Bitcoin CashIn recent days, bitcoin cash has seen significant gains, and supporters of the digital currency have been positive about specific developments, like the internet entrepreneur Kim Dotcom’s current support. On February 11, the Chinese New Year, the prominent bitcoin mining executives, Jiang Zhuoer and Jihan Wu joined a Satoshi’s Angels discussion channel and spoke favorably […]
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