Owing to the new stricter crypto regulations in China, the IBC Group has decided to pack up its mining operations in the country and move to new locations in UAE, Canada, USA, Kazakhstan, Iceland, and various South American countries.
China’s Crypto Crackdown Drives Out Institutional Miners
The institutional crackdown on crypto-related activities in China has been chalked up to the government trying to ‘control financial risks.’ The nation had once hosted a whopping majority of the world’s bitcoin mining capacity or hashrate. With over 90% of Bitcoin mining shutting down, companies are moving to more crypto-friendly parts of the world. The IBC Group is following suit and pulling out of China and moving its staff to multiple new locations globally, including UAE, Canada, USA, Kazakhstan, Iceland, and various South American countries.
Several leading crypto miners and investors see the move out of China as a positive. For example, Peter Smith, CEO and Co-Founder of Blockchain.com, recently said that he believes China’s crackdown will help diversify mining operations worldwide and lead to an acceleration of large mines being built in Europe, the US, and various other locations.
IBC Group Chairman Excited About Diversification
Arab ‘Whale’ and IBC Group Chairman Khurram Shroff spoke about his decision to move his company’s mining operations from China, saying that the Chinese crackdown is a temporary inconvenience.
One of the Middle East’s oldest Blockchain investment companies, the IBC Group was initially headquartered in Dubai, UAE. However, earlier this year in March, Shroff announced his decision to move its corporate headquarters to Toronto. Talking about the geographical diversification of his company, Shroff said,
“As a company headquartered in Toronto, the fastest growing tech hub in North America, we feel perfectly positioned to take advantage of these changes. A shift of cryptomining 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.”
IBC Group Pledged Largest Bitcoin Investment
Back in February 2021, Shroff was in the news for pledging the largest ever Bitcoin investment, worth $4.8 billion, to set up the Miami 2.0 Blockchain Strategy Foundation.
The investment by IBC Group would be significant in facilitating the digital currency’s adoption across multiple industries and critical in aiding Miami’s vision to integrate Bitcoin in everyday transactions. Commenting on his decision, Shroff said,
“Making the largest Bitcoin investment in history is proof of our commitment to assisting cities adopt blockchain, which we see as the key to enabling widespread adoption.”
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
