Chinese bitcoin mining startups are relocating from Guangzhou to Maryland, USA as China’s crypto crackdown continues

As we reported a few hours ago, the price of Bitcoin tumbled Monday morning amid China’s recent crackdown on bitcoin mining in the country. That’s not all, the Chinese government also banned banks and financial institutions from providing services to any company involves in cryptocurrency transactions, which makes it difficult for bitcoin mining companies to continue their operations in China.

A few hours ago, Eunice Yoon, a CNBC Beijing Bureau Chief and Senior Correspondent for NBC News reported that three tons of bitcoin mining rigs are being lifted and relocated from Guangzhou to Maryland, USA as China crackdown intensifies.

In a tweet, Yoon said that “China logistics firm in Guangzhou confirms to CNBC it’s airlifting 3,000kg (6,600lbs) #bitcoin mining machines to Maryland, USA. Fenghua International advertises products delivered to door, tax on both ends cleared. Price per kilo: as low as $9.37!”

#China logistics firm in Guangzhou confirms to @CNBC it’s airlifting 3,000kg (6,600lbs) #bitcoin mining machines to Maryland, USA. Fenghua International advertises products delivered to door, tax on both ends cleared. Price per kilo: as low as $9.37! #cryptocurrencies pic.twitter.com/8yUjZjhpkk

— Eunice Yoon (@onlyyoontv) June 21, 2021

Chinese authorities began the nationwide crackdown in bitcoin mining a few weeks ago after Chinese police busted more than 170 criminal groups involved in using cryptocurrencies to launder money. The money launderers charged their criminal clients a commission of 1.5% to 5% to convert illegal proceeds into virtual currencies via crypto exchanges, the ministry said via its official Wechat account.

As of May this year, China accounts for more than 75% of bitcoin mining around the world, according to research published by the peer-reviewed journal Nature Communications last month. According to multiple reports, the regions affected by the current crackdowns are known to have the cheapest electricity rate in the world. The crackdowns have also caused Bitcoin hash rate to decline almost immediately.

Some mining experts and crypto saw the exodus from China as an opportunity for the US to attract the ousted miners. However, given the high cost of electricity in the State of Maryland, it remained to be seen how these startups plan to remain competitive after relocating their mining rigs to the United states.