China's ban forces some bitcoin miners to flee overseas, others sell out

China's sweeping ban on cryptocurrency mining has paralysed an industry that accounts for over half of global bitcoin production, as miners dump machines in despair or seek refuge in places such as Texas or Kazakhstan.

China's State Council, or cabinet, vowed to crack down on bitcoin trading and mining in late May, seeking to fend off financial risks after the global bitcoin mania revived Chinese speculative trading in cryptocurrencies. The clampdown comes as China's central bank is testing its own digital currency.

"If the government doesn't allow it , I just have to quit," said Liu Hongfei, a mining project operator in China's southwestern Yunnan province.China's ban on bitcoin mining may see up to 90per cent of all mining in the country go offline, according to an estimate by Adam James, a senior editor at OKEx Insights.

As a result of China's shutdown,"every mining operation outside China benefits straight away," because their mining reward, which is proportional to their share of the global hash rate of the bitcoin network - a measure of miners' processing power - automatically goes up, Sharma said. "We are accelerating our overseas development for alternative high-quality mining resources," CEO Xianfeng Yang said in a statement. BIT Mining has also invested in cryptomining data centres in Texas.

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