As Chinese authorities make it harder than ever to exchange cryptocurrency into fiat, miners may be forced to move to other jurisdictions, local sources say.
On Monday, crypto industry blogger Colin Wu tweeted that miners in China have been struggling to pay for electricity after the authorities started cracking down on OTC brokers in the country.
“74% of the miners surveyed told Wu that the payment of electricity bills has been greatly affected,” the tweet reads. China recently started blocking bank accounts and cards involved in purchases of cryptocurrency, and has investigated the two largest brokers, Zhao Dong and Xu Mingxing, Wu wrote in a blog post.
It’s currently a “challenge” for Chinese miners to convert bitcoin or tether into yuan, as “many people have had their bank accounts frozen when exchanging crypto for RMB on OTC platforms,” said Thomas Heller, formerly global business director at the mining pool