Bitmain, China’s largest manufacturer of top-tier crypto mining machines, has claimed on Wednesday that it suspends sales of its miners globally due to the mining restriction in China.
According to Bloomberg, the Beijing-based mining giant decided to cut supply after its rigs have lost their value by about 75% since April.
In recent weeks, China had stepped up a crackdown on all crypto mining operations in the country as a measure to root out financial crime using crypto. This forcing many of the Bitcoin miners in China to sell off their rigs or move to more crypto-friendly countries, such as the USA, Australia, Indonesia, Russia, and Kazakhstan.
That crypto miners’ exodus caused a huge selling pressure on the mining machines secondary market, so Bitmain has decided to suspend sales to cut additional selling pressure on the market.
Bitmain sees this as a temporary move to aid the smooth market transition as the pressure on the second-hand market begins to loosen in time. But now, it’s a hard time for the crypto market, while the prices falling and the miners facing more strict regulations worldwide.
The crypto ban in China is also reportedly related to the short launch of a digital currency by the government, for which it wants to regulate and clean up the industry before the launch.
For now, we can see central banks worldwide continue their trials with digital currencies (CBDC), but at the same time, they also up the regulatory pressing on Bitcoin and other cryptocurrencies, which sends disturbing signals to the crypto market.