Bitcoin mining boom in South-East Asia as China bans crypto

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Crypto mining has increased in Siuth-East Asia with 2021 China’s ban on cryptocurrency mining.

Indeed, Bitcoin miners are relocating their operations to Southeast Asia, with the region becoming more or less a new hub.

Bitcoin industry is leveraging its affordable electricity, skilled workforce, and existing infrastructure in the region, with mining companies previously operating in China now setting up in diverse locations.

In particular, Peter Lim, founder of Bityou, moved his 10,000-rig, 20-megawatt operation from China to Tanjung Manis, Sarawak, Malaysia, noting the abundance of abandoned industrial sites in the area, a unique opportunity to repurpose unused resources.

According to Lim, “Southeast Asia offers a strategic advantage with its low-cost electricity and available skilled labour.”

This sentiment is said to be shown in the industry, contributing to Malaysia’s 2.5% share of the global Bitcoin hash rate.

However, establishing mining operations in South-East Asia comes with challenges with miners facing regulatory hurdles, power supply issues, and occasional police raids due to illegal electricity usage.

Industry experts, however, anticipate substantial growth in the region’s Bitcoin mining and related manufacturing sectors.

“Southeast Asia is set for significant expansion in the next few years,” stated Taras Kulyk, founder and CEO of SunnySide Digital.

Kulyk’s company, which distributes data centre hardware, sees the region as a promising market due to its rising interest and potential in the crypto space. The influx of Bitcoin miners into Southeast Asia is expected to boost the local economy, create jobs and enhance technological infrastructure.