Large cryptocurrency companies began their withdrawal from China “from where around 60 % of bitcoin was extracted until June”, due in the first place, to the forceful regulations imposed by the country on the digital asset market and restrictions on the use of electricity, imposed by the authorities of the Sichuan province, where the largest mining farms were located.

Fred Thiel, director of Marathon Digital Holdings, highlighted that most of the US cryptocurrency mining companies are moving to the United States and Canada, while others are evaluating the possibility of settling in countries such as Russia and Kazakhstan due to the soaring costs involved in moving all equipment to the United States.

In addition to the very high transportation costs, he also highlights the 25 % that they must pay for tariffs on “computer imports”, which generates large losses for companies. In Thiel’s opinion “it is as if General Motors had to completely close its plant in one place and rebuild the same plant in another place.”

As will be recalled, last June the government of the Asian country tightened measures to restrict the use of virtual currencies and demanded, through the People’s Bank of China, financial entities not to allow transactions with cryptocurrencies.

Those measures impacted the crypto market and bitcoin experienced a sharp price drop that placed it on the order of $ 32,400. However, the situation was quickly reversed and it resumed its value in the short term and currently continues to rise to the point that by the night of August 22 the price was trading at $ 48,500.

M. Rodríguez

Source: sputniknews

La entrada Big crypto companies leave China apareció primero en Bitfinance.