By Shelly Melancon (Switzerland)
Miners may suffer another devastating setback to their activities as Alibaba Cloud plans to withdraw its cloud services from them. Alibaba Cloud is the biggest cloud service provider in the country. If the cloud service provider goes through with its plan, miners in China may have to outrightly stop their activities. Alibaba’s proposed service withdrawal is informed by China’s hard line against crypto mining activities. The Asian country had issued an ultimatum to mining companies that all mining operations must cease by the end of June.
WuBlockchain, a popular crypto page on Twitter, had announced the impending move. It earlier announced that regulators in Sichuan, a Chinese province, had issued a directive to power generation firms to cut off power supply to mining companies in the region. China’s frantic crackdown on mining operations is in view of its intention to become carbon-neutral by 2060. Tokenhell had reported that the Chinese government complained of the high energy consumption and environmental hazards that result from mining activities.
China a Major Bitcoin Mining Base before Ban
There was a concentration of crypto miners, especially Bitcoin miners in China due to the immense benefits the country offered them. The country boasts of cheap electricity, large expanse of lands and safety as well. In fact, China contributed a bulk of the cumulative global hashing power. Chinese miners enjoyed these benefits until the ban. The past few weeks have witnessed a massive influx of Chinese miners to other regions like Texas, Serbia where they can comfortably carry out their operations.
Also read:Alibaba Cloud issued a notice to mining firms who use their services that they may no longer enjoy these services as the regulations on crypto have increased. Some miners did not want to leave the country because they were deliberating on using alternative power sources like volcanoes and cow manure for their activities. However, with the latest development, they may be forced to leave the country for elsewhere. Experts and stakeholders have predicted that this may affect hashing power for Bitcoin mining.
Crypto Exchanges May Still Enjoy Cloud Services
Cryptocurrency exchanges may not be affected by the latest development, WuBlockchain reports, as most of their cloud servers are not situated in China. Other cloud services providers in the country, TenCent and Amazon Web Service (AWS) are yet to issue announcements in this regard. Nonetheless, mining firms would have to seek alternatives.
In another development, China is making giant strides in launching a central bank digital currency (CBDC), the digital Yuan. According to reports, it has been implemented in some regions across the country. China has been anti-crypto for a long time. In fact, it recently issued notices to crypto exchanges with respect to Know Your Customer/Anti-money Laundering measures.
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