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China’s recent crackdown on crypto trading and mining has been blamed for the market-wide price correction. However, the government’s strict regulatory stance on digital currencies could benefit other countries such as Canada as mining firms, which are leaving China en masse, start to scout for other locations for their operations.
This was revealed by IBC Group chairman and iMining CEO Khurram Shroff, Cointelegraph reported. The IBC Group is a Dubai-based investment company that decided to end its BItcoin (BTC) and Ether (ETH) mining operations in the country as China banned the activity in different provinces.
IBC Group plans to distribute its mining in China to its existing operations in Canada, the United States, the United Arab Emirates, Iceland, Kazakhstan, and various operations in South American countries. The group has already transferred its headquarters to Toronto, Canada.
Shroff that China’s crackdown on crypto mining activities will be a temporary inconvenience. However, he believes that the crackdown will diversify the location of mining operations, which is good for the industry. It will also be an opportunity for Canada to increase its presence in the mining scene.
“A shift of crypto mining operations out of China will be a huge opportunity for Canada,” Shroff said. “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.”
Aside from Shroff, Galaxy Digital CEO Mike Novogratz also believes that the migration of crypto miners out of China as a positive development for the industry. “Bitcoin still exists and survives in lots of ways,” adding that the exodus could be “a big net positive for the ecosystem.”
While Bitcoin plunged by around 65 percent from its April all-time high, he said that the crypto ecosystem worked like it was supposed to. “We didn’t have the plunge protection team,” Novogratz explained. “We didn’t have lawsuits. The system worked how it was supposed to work. It is a very robust system that has been built in a small amount of time.”
