Rumors of a nationwide bitcoin mining ban in China have sent miners and pool operators scrambling to scope out alternatives. They're eyeing Vietnam, Laos, Thailand, Russia, and the United States for r
Rumors of a nationwide bitcoin mining ban in China have sent miners and pool operators scrambling to scope out alternatives. They're eyeing Vietnam, Laos, Thailand, Russia, and the United States for relocation sites.
Cui, a Chinese miner, told the South China Morning Post that operators in his network have been visiting these countries to negotiate electricity rates with local authorities and secure sites. "Many of us have already paid visit to Vietnam, Laos, Thailand, Russia and the US, negotiating electricity prices with local authorities and buying sites for future use," he said. "The business blueprint is bound to go overseas, even if there's only a 1 per cent possibility that China's crackdown against bitcoin would extend to mining."
Last month, Sichuan Electric Power Company issued a statement claiming that electricity providers in its region could no longer serve bitcoin miners. But the announcement didn't hold up. CnLedger, a respected source in the Chinese crypto community, reported that Caixin—a state-owned publication—had verified the facts with the government. The company head admitted the statement was rushed and that he lacked the authority to make such determinations. He also clarified that his firm isn't even connected to the national grid and relies on local power stations.
Major grid operators and government officials moved to squash the rumors. The false claims about a nationwide ban seem to have lost traction, at least in the near term. But the uncertainty hasn't stopped miners from planning their exits.
Russia has emerged as an attractive destination. The government there courts miners with favorable infrastructure and regulatory support. Several large mining operations run in the country, pulling in millions of dollars each month. The draw is simple: Russian electricity costs a fraction of what it does elsewhere.
Operators like Cui see relocation as necessary. The Chinese government acts unpredictably, and the crackdowns on local exchanges have made it harder to sell mined bitcoin domestically.
The South China Morning Post sought comment from three major mining companies, but all refused. Cui likewise refused to name the firm he runs, citing concerns about future dealings with local utilities.
Cui also noted that bribery runs through the global mining sector. "No one brags about it because it's best to make a fortune in silence," he added.
