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According to iMining CEO Khurram Shroff, the diverse placement of Bitcoin mining facilities following China’s crackdown is fantastic news for the rest of the globe.
The Chinese government’s regulatory onslaught on cryptocurrencies has continued to alienate big miners. Following prohibition notifications from several regions throughout the nation, Dubai-based investment firm IBC Group is allegedly planning to cease Bitcoin (BTC) and Ether (ETH) mining activities in China.
The group has major mining operations in China and plans to distribute its operations to the United Arab Emirates, Canada, the United States, Kazakhstan, Iceland and various South American countries, according to sources. IBC Group recently relocated its headquarters to Toronto, Canada.
Khurram Shroff, chairman of IBC Group and CEO of iMining, commented on the crypto crackdown, saying it is only a temporary inconvenience. He went on to say that the diverse placement of mining operations is good news for the rest of the world:
“A shift of crypto mining operations out of China will be a huge opportunity for Canada. The Toronto Stock Exchange recently listed the world’s first Bitcoin ETF, so the nation is already ahead of the curve, in terms of mainstreaming cryptocurrencies.”
Following the large-scale power disruptions in the Chinese mining hotspot of Xinjiang in mid-April, China focused on the energy usage of the crypto mining sector. This was followed by greater government oversight, which sent shockwaves across the cryptocurrency markets.
However, industry analysts have largely agreed since then that, while the first upheaval will be hard and difficult, the movement of miners out of China will foster crypto’s decentralisation.
Mike Novogratz of Galaxy Digital saw “a big nett positive” for the Bitcoin ecosystem in the long run, while former Gemini security engineer Brandon Arvanaghi emphasised, “ “The crackdown means that Bitcoin is working, not that it’s failing.”