Dubai-based IBC Group has responded to the Chinese government’s crackdown on cryptocurrencies by closing all of its bitcoin (BTC) and ether (ETH) mining facilities located in the Middle Kingdom. A large part of these activities will thus be deported to North America, South America, Europe and the Middle East. However, the number one target remains Canada.
In search of new mining territories
Founded in 2014, the IBC Group (International Blockchain Consulting) currently covers 40 countries. It offers blockchain consulting, ICO support, access to institutional training, and is primarily focused on crypto mining. The group has over 1,500 employees and has worked with startups as well as established players, while consulting with governments and institutions over the past 7 years.
According to Coin Telegraph, the group has invested in over 4,000 blockchain projects as a result. Most recently, they played a key role in the launch of Ethereum 2.0 with about 100,000 staked ethers.
In light of the Chinese crackdown, the IBC Group will end BTC and ETH mining in China. As a result, the group plans to transfer staff to the United Arab Emirates, the United States, Kazakhstan, Iceland and various countries in South America. And according to statements by its president, Khurram Shroff, the priority is Canada:
“A move of crypto mining 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 country is already ahead of the curve in terms of cryptocurrency integration.”
A crackdown on Bitcoin with positive benefits for the rest of the world
The institutional crackdown in the Middle Kingdom really took shape, when the People’s Bank of China (PBoC) reminded all Chinese banks that they could not engage in any cryptocurrency-related activity. Today, that’s when more than 90 percent of China’s bitcoin mining would have already been shut down.
According to Khurram Shroff, this crackdown is only a “temporary inconvenience”. He believes that the (diversified) relocation of mining facilities is great news for Bitcoin and for the rest of the world. An opinion shared by a good portion of miners and crypto-investors in the rest of the world!
Peter Smith, CEO and co-founder of Blockchain.com, is also confident that this will help accelerate the development of large farms in the 4 corners of the world. Finally, MicroStrategy CEO Michael Saylor believes that China has made a “trillion dollar mistake”.
Before being the CEO of the IBC Group, Khurram Shroff was already a famous crypto-investor. His speech is meant to be reassuring and offers a new perspective for Bitcoin and cryptocurrencies, with many countries ready to take up the mantle and welcome BTC miners. However, the story is far from over. Things are not getting any better in China, with now the hunt on crypto and Bitcoin influencers.