Chinese Bitcoin Miners Explore Relocating Abroad Amid Fears of Crackdown

An increasing number of Chinese miners are reportedly exploring other jurisdictions in which to operate amid growing uncertainty regarding the future of China’s mining industry. Although the Chinese government has not indicated that it will extend its cryptocurrency crackdown to target miners, many are making plans to base their operations elsewhere.

Vietnam, Laos, Thailand, Russia, and the United States are Among the Nations that Chinese Miners are Considering

Last week, a circulating document indicated that the state-owned power company in China’s Sichuan province would be mounting a crackdown on bitcoin mining. Despite the company seeking to play down the document – stating that the document comprised an internal memo addressing the misallocation of scarce hydropower to miners rather than underserved rural communities during the province’s dry season – many miners are increasingly exploring international options in order to reduce their vulnerability to further regulatory action on the part of the Chinese state.

Chinese miner, Akira Cui, recently told the South China Morning Post that many miners “have already paid visit to Vietnam, Laos, Thailand, Russia and the US, negotiating electricity prices with local authorities and buying sites for future use.” Mr. Cui argues that “the [mining] business blueprint is bound to go overseas, even if there’s only a 1 percent possibility that China’s crackdown against bitcoin would extend to mining.”

The South China Morning Post states that it contacted four major mining companies, with Mr. Cui being the sole respondee. Representatives of Chinese mining companies seldom speak with media as many miners are reported to strike private deals with local power companies that are concealed from higher-ranking officials and institutions. “No one brags about it because it’s best to make a fortune in silence,” Mr. Cui said.
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