Thailand’s Crypto Mining Industry is Growing Thanks to China’s Ban
Chinese authorities banned cryptocurrency mining activities earlier this year, forcing crypto mining farms and other independent miners to move their operations to other parts of the world. China’s decision is now favoring Thailand, with its cryptocurrency mining industry experiencing rapid growth.
Cryptocurrency Mining is Growing in Thailand
Thailand is one of the countries benefitting from China’s recent ban on cryptocurrency mining. Chinese authorities banned Bitcoin mining earlier this year, cutting off the cryptocurrency miners from the electricity grid.
The move resulted in the miners moving to other parts of Asia, Europe and North America. According to Aljazeera, Thailand is one of the countries that is benefitting from China’s ban on cryptocurrency mining activities
According to the report, the Thailand cryptocurrency mining sector is growing. The United States, Russia, Malaysia, and Kazakhstan have attracted the big mining farms that left China. However, Thailand is attracting smaller and more independent cryptocurrency miners. Also, its local cryptocurrency mining population is growing, thanks to the availability of mining devices.
Thai entrepreneur Pongsakorn Tongtaveenan told Al Jazeera that Chinese miners dumped their mining hardware, leading to a crash in the price of the devices. He took advantage of the decrease in mining hardware prices to acquire the devices, ship them to Thailand, and resell them to small local investors.
He stated that “Bitcoin is the gold of the digital world. But a mining rig is like gold mining stocks: you’re paid dividends according to the gold price.”
Cryptocurrency Trading is Legal in Thailand
Thailand is one of the first countries to make cryptocurrency trading legal. The country’s regulatory agencies have set up policies to guide the activities of cryptocurrency companies and investors in the country.
However, it remains unclear if cryptocurrency mining is legal in the Asian country. The regulators are in the process of developing a framework that effectively addresses the complexities.
Chinese authorities banned cryptocurrency mining and other crypto-related activities earlier this year. The ban forced the mining entities in China to move to countries such as the United States and Russia.
China’s hostility towards cryptocurrencies didn’t start this year. Even before the cryptocurrency mining ban, Chinese courts have been throwing out cryptocurrency-related cases, citing that the law does not cover such cases.Source