New restrictions imposed by the Chinese government on digital currencies are forcing manufacturers of mining equipment to reorient to work with clients in Central Asia and North America. This was reported by the Reuters news agency.

A few days ago, the Chinese authorities introduced new restrictions under which banks and financial institutions were prohibited from servicing transactions related to digital assets. Such measures were taken by the Financial Stability and Development Committee as part of efforts to reflect financial risks. Against the background of these bans, large cryptocurrency mining companies have fully or partially suspended operations in the country.

Specialty equipment manufacturers, many of which are based in China, are currently looking for new customers to drive growth. A spokesman for mining equipment, Ebang International, said the company would not be able to provide sufficient supplies of its products to overseas customers, even if domestic sales dwindle. This is partly due to the expectation that large Chinese companies will simply move their businesses outside the country. Another manufacturer of mining equipment, BIT Mining, announced the signing of an agreement with a company from Kazakhstan, under which a large mining data center will be built in Central Asia.  

The vice president of Innosilicon Technology, Alex Ao, believes that if China loses its mining capacity, companies that mine cryptocurrencies in other countries will benefit. “Places like North America and Central Asia have advantages in terms of energy supply and political support“Said Alex Ao, who also expects most of the major miners from China to move their business overseas.