articleStartImage
×

When it comes to the cryptocurrency space, China has taught us that its domination can affect the entire market. The latest teaching we’re receiving from the country relates to Bitcoin mining. The process is about to become vastly more expensive for some.

Take ViaBTC Technology Ltd., for example. It was reported this weekend that it is raising maintenance fees for some of its clients to 50% from a mere 6%. ViaBTC runs the fourth-biggest bitcoin mining collective.

Its move to raise Bitcoin mining fees comes as China has ordered mining facilities to close. In a recent statement, ViaBTC said that over the past 14 months, its cloud mining service has covered more than 50 countries and regions around the globe, served tens of thousands of cryptocurrency investors, and received great popularity all over the world. 

The statement also reads:

Recently, due to policy changes, some of our long-term hosting partners are facing a crisis of farm closures as mining resources in Mainland China become more scarce, leading to rocketing costs of our cloud mining operation. To guarantee the long run of cloud mining, ViaBTC has no choice but to readjust our maintenance fees. 

Specifically, ViaBTC said the changes will be as follows:

  • S9 contracts: From UTC time 8:00 12th January 2018, maintenance fee ratios for S9 contracts will be temporarily adjusted from 6% to 50%. 
  • L3/D3 contracts: Maintenance fees for L3/D3 contracts will remain at 6% and L3/D3 redemption is not yet available.

According to Bloomberg, Chinese officials have reportedly asked local governments to guide miners toward an “orderly” exit from the business, and ViaBTC has moved operations to Iceland and America as a result. 

The move from Chinese regulators will change the Bitcoin mining landscape as operations based in the country are starting to shift elsewhere. The relative profitability of the operations may hinge on how electricity costs compare to those in China, where rates are subsidized.-Bloomberg

The Bitcoin space will be on the lookout this upcoming week to see how these latest Bitcoin mining actions will affect prices.