Suncity-Linked Company Stops Crypto Mining Operations Following Chinese Government Directive


Following an announcement from the Chinese government on a planned crackdown on cryptocurrency mining operations, Sun International Group Limited has decided to suspend its planned operations in this area.

The company – which is owned by Suncity Group Executive Director Alvin Chau Cheok Wa – focuses on securities trading, margin financing, futures and options brokerage.

According to several company dispatches published in March and April, the company had agreed to provide HK $ 100 million ($ 12.8 million) in shares to purchase cryptocurrency mining equipment from two registered companies. in the Cayman Islands.

One of the companies is mainly engaged in the supply of equipment for operating a cryptocurrency mining farm in Inner Mongolia, Xinjiang and Sichuan Province.

However, according to a recent announcement by Sun International, after a statement made on May 21 by the Financial Stability and Development Committee of the State Council of the People’s Republic of China on bitcoin mining and trading activities, it decided to instruct the relevant service provider to suspend the operating service of the cryptocurrency miner.

In this statement, the State Council announced that the Chinese authorities “will crack down on bitcoin mining and trading behavior, and resolutely prevent the transfer of individual risks to society.”

“The group will support and follow the leadership of the PRC government and stop related mining activities in the PRC. In this regard, the group will discuss with the relevant service provider and take the necessary steps to continue its cryptocurrency mining activities in other countries or regions, ”added Sun International.

Sun International Group Limited is a subsidiary of First Cheer Holdings Limited, a company 50/50 owned by Alvin Chau and Cheng Ting Kong, chairman and chief executive officer of Sun International.

China is the world’s largest cryptocurrency mining site, accounting for 65% of bitcoin’s hash rate, a unit of measure of processing power used by the bitcoin network to verify transactions and mine new tokens. of cryptocurrency, according to Cambridge Bitcoin Electricity Consumption Index estimates.

Despite the ban on financial transactions of bitcoin and other cryptocurrencies since 2019, several cryptocurrency mining farms have been operating in Inner Mongolia, Sichuan, Xinjiang, and other parts of the continent so far.


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