The International Blockchain Consulting “IBC” Group has shut down all of its Bitcoin and Ethereum mining operations in China. This is in response to the Chinese government’s crackdown on cryptocurrency.
Major portions of the company’s operations will relocate to North and South America, Europe and the Middle East.
It was founded in 2014 and now has a presence in 40 countries, offering ICO support to institutional training. The company has worked with start-ups and established players, as well as has provided counselling to governments and organisations. In addition, it most recently staked around 100,000 Ethereum in support of the launch of Ethereum 2.0.
Khurram Shroff, a well-known crypto investor and the Chairman of the IBC Group, remarked on the situation, “As far as our own cryptomining operations, within the IBC Group, are concerned. We are closing down all our Bitcoin and Ethereum mining facilities across China; and moving our staff to multiple new locations globally, including UAE, Canada, USA, Kazakhstan, Iceland and various South American countries.”
This massive shift of operations out of China to direct economic competitors is not surprising.
The Chinese government and their central bank, The People’s Bank of China, have continued to enforce restrictive rules on cryptocurrencies since acting as a catalyst in May’s crypto meltdown.
In fact, BTC China declared just last week that they will be exiting the Chinese market due to the new development. Bitcoin enthusiast Michael Saylor even called the Chinese choice a trillion-dollar mistake.
Bitcoin’s value increased by more than 1,000 percent in a year, reaching an all-time high of about £47,000 in April. It plunged after Chinese miners began shutting down their operations, ending first half of the year around 50% lower than its previous high. Bitcoin has lost at least 50% on four occasions in the last ten years.