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Chinese cryptocurrency exchange Huobi suspends domestic bitcoin mining

May 24, 2021 4:29 pm

Centralized cryptocurrency exchange Huobi has suspended bitcoin mining service and sales of mining equipment in mainland China as Beijing is cracking down on Bitcoin mining.

Detail: Huobi Mall, part of Huobi Exchange, said on Sunday that all of its custody businesses have been suspended.

“We are contacting oversea service providers to export mining rigs in the future,” Huobi Mall said on its official Telegram community.

Although Huobi Mall’s services have been suspended, Huobi.pool, continue normal operation, Huobi Exchange said in a separate announcement posted on Tencent’s messaging app QQ.

Huobi.pool is currently the world’s eighth largest mining pool by hash rate, according to data compiled by BTC.com.

BTC.TOP, a crypto mining pool, also suspended its China business due to regulatory risks.

Jiang Zhuoer, the founder of BTC.Top, said on microblogging site Weibo that BTC will mainly focus on crypto mining business in North America.

“All of Chinese crypto mining rigs will be sold overseas in the near future as Chinese regulators crack down on mining at home,” he said.

Context: Hashcow, another Chinese crypto miner which owns 10 mining sites in Xinjiang and Sichuan, said it will comply with the regulations to sell computing powers to investors.

News of Chinese government’s crack down on Bitcoin related service, which include future contract trading services, exchange-traded products as well as mining services in China, appears to be one of the main reasons for the latest crash in crypto market.  

The price of bitcoin break its resistance level of USD33,000 and shortly fell below USD30,000 on May,19.

At the time of publication, price of Bitcoin is hovering at USD36,000, dropped nearly 50% from its highest price of USD64,895 on April, 14 when coinbase listing pushed its price to a record high.