The Bitmain, a mining bitcoin Chinese, is entering Europe with a new subsidiary established in Switzerland.
Currently under construction, "Bitmain Switzerland" will have its base in Zug, commonly known as the "valley of crypto-coins", according to a report by the Swiss newspaper Handelszeitung.
A more friendly jurisdiction and a favorable regulatory environment are causing an increasing number of startups and blockchain and crypto-coin companies to establish themselves in the region. The city of Zug also allows citizens to pay for municipal services with bitcoin .
Bitmain's entry into Switzerland comes amid restrictions on bitcoin mining operations in China. Led by the Central Bank of China, officials are seeking to reduce the country's intensive bitcoin mining process by denying favorable policies such as tax cuts and cheap hydroelectric power tariffs offered to bitcoin miners in several Chinese provinces. While the change is not a radical crackdown, Chinese officials are certainly eliminating the local mining ecosystem, forcing miners like Bitmain to seek friendlier places.
Following the creation of subsidiaries in the United States, Singapore and Israel, Bitmain chose Zug in Switzerland as its next global hub because Switzerland is "one of the most progressive countries ... with good legal stability," a company spokesman said. to publication.
Notably, Bitmain added:
"Bitmain Switzerland will play a key role in our global expansion."
In addition, Bitmain said it will hire employees in Zug and will "actively communicate" and cooperate with the Finnish Financial Market Supervisory Authority (FINMA) and other regulatory organizations and government authorities in the region.
With this mass migration from various mining centers in China to other countries, China loses a little of its "reign" and makes mining a little more decentralized.!