He added that the majority of these requests were coming from China and that demand had "risen significantly" since the end of last summer, when Chinese authorities stepped up their crackdown on bitcoin exchanges. Hydro Quebec, a big electricity supplier in eastern Canada, is receiving "new requests every day" for its services from bitcoin mining firms, said spokesman Marc-Antoine Pouliot. Interest from Chinese bitcoin miners is already being noticed in the country. The latter helps servers keep cool to prevent them overheating. The country has cheap, reliable energy sources, as well as a chilly climate. Here's what I learnedĬanada ticks a lot of boxes. Miners also want a government that's going to take a hands-off approach to regulating cryptocurrencies. "You need a country that can provide such a big capacity at a reasonable price," Liao said. Digital currency website Digiconomist last year reported that one bitcoin mine it visited in Inner Mongolia used the same amount of power that's needed to continuously fly a Boeing 747. Running a bitcoin mine has a very specific list of requirements. After getting close to $20,000 in late 2017, bitcoin tumbled below $6,000 this week.įor the people running bitcoin mines in China, the big question at the moment is figuring out where to go. The Chinese government didn't respond to requests from CNNMoney for comment on its stance on bitcoin mining and trading.Įxperts say the Chinese government, which imposed controls in recent years aimed at stopping too much money from flowing out of the country, is wary of how cryptocurrencies can enable people to move funds outside of the traditional financial system and potentially put them to nefarious uses.Įfforts by governments around the world to take an increasingly hard line on cryptocurrencies have contributed to the recent sharp decline in their prices. And it's now reported to be moving to block the websites of overseas trading platforms. It forced exchanges inside the country to shutter trading operations in September.
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The Chinese government wants cryptocurrency miners to make an "orderly exit" from the industry because their operations are bad for the environment, don't pay tax and can be a fire hazard, Liao said, citing reports in Chinese state-run media.Ĭhina has shown its willingness to crack down on other aspects of the cryptocurrency industry. Related: Bitcoin's 'many problems' puzzle regulators Most declined to be identified by name for this article due to the sensitivity of the situation. Liao is the CEO of cryptocurrency mining firm Lightningasic, which is based in the southern Chinese city of Shenzhen.įive other owners of bitcoin mines in China also told CNNMoney in the past month that they were considering moving operations out of the country because of pressure from the government. He said in a recent interview with CNNMoney that he's thinking about moving some of his operations overseas, with Canada, the U.S. "It's a hard time for the mining business in China," said Jack Liao, who owns several bitcoin mines in the country. The country is a good fit for the activity because of the cheap electricity and land available in provincial areas.īut the industry is feeling unwelcome these days. About 60% of all cryptocurrency mining takes place in China, according to a study last year by the University of Cambridge.