Alibaba is tightening its regulatory supervision of mining companies amid China’s ongoing crackdown against cryptocurrencies. The group’s cloud computing subsidiary, Alibaba Cloud has issued a fresh warning to crypto mining firms saying that it would discontinue its services as per recent government-imposed requirements.
Exclusive: Alibaba Cloud, China’s largest cloud service provider, made a call to cryptocurrency and mining companies registered in China, saying that according to regulatory requirements, it may cancel its domain name and stop server operation. pic.twitter.com/LxCG3sgjvz
— Wu Blockchain (@WuBlockchain) June 18, 2021
Alibaba Cloud to Discontinue to Services for Crypto Miners
The latest development in China’s war against crypto was reported by Chinese crypto-journalist Colin Wu and the 8BTC news portal.
In a tweet posted to his account, Colin reported that Alibaba Cloud — the second largest provider of cloud computing services in the country — will cancel the domain names and stop server operations for companies involved in crypto mining. The company representatives have cited a change in its regulatory policies in the second quarter of 2021 as the reason behind its decision.
With Alibaba siding with the authorities, crypto miners in the country face an uncertain future. Back in March, China’s Inner Mongolia had banned mining operations in the region, spurring fears that the practice may spread across the country. And just yesterday, the government ordered energy supplying companies in its Sichuan province to stop servicing firms that deal in crypto mining.
Interestingly, Sichuan is home to some of the largest hydropower projects and generates more electricity than it needs during summer. This means the country would rather waste its surplus energy than allowing it to benefit crypto operations.
The Chinese authorities have implemented similar restrictions in Xinjiang and Qinghai provinces.
Exchanges Will Remain Unaffected By Alibaba’s Decision
As of now, Alibaba Cloud is the only company in its segment to issue an advisory. Tencent Cloud and AWS have expressed no such intentions.
Colin Wu has underlined that the latest restrictions will have no impact on crypto exchanges. This is because most exchanges do not maintain their servers in China.
Meanwhile, many crypto mining companies are exploring opportunities to ship their servers to Texas and Tennessee to keep their lucrative businesses running.