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Alibaba Cloud Says It May Stop Servicing Crypto Mining Companies in China

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Fri, 06/18/2021 - 11:50
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Yuri Molchan
Chinese media sources state that Alibaba Cloud behemoth may stop providing services to crypto companies in China – that would hit Bitcoin miners but not exchanges
Alibaba Cloud Says It May Stop Servicing Crypto Mining Companies in China
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Chinese 8BTC news portal and Chinese crypto journalist Colin Wu have reported that the second biggest provider of clouding services in China, Alibaba Cloud, has warned all crypto companies, including mining firms, that it may stop working with them due to the recent regulatory requirements.

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Alibaba Cloud joins the clampdown on crypto miners

Colin Wu has taken to Twitter to announce another negative piece of news for Chinese crypto miners today.

Earlier, U.Today covered (based on Wu’s report) that Chinese province Sichuan authorities had ordered electricity producing companies to stop servicing mining firms in the area.

This request was made despite the fact that in the summer there is plenty of unspent hydroenergy in the province. Unless it is used by Bitcoin miners, it can only be wasted, Wu tweeted.

Now he reports that Alibaba Cloud has joined this witch hunt for cryptocurrency miners in China.

The company has warned its clients who are involved with the crypto industry that services for them may no longer be provided.

The reason for that, as Alibaba Cloud reps explained to the companies, is that since the second quarter of 2021, regulatory supervision has been tightened.

Related
Power Generation Companies in Sichuan, China, Ordered to Stop Servicing Bitcoin Miners

Crypto exchanges will not be harmed by Alibaba Cloud’s decision

Tencent Cloud and AWS have not made similar notices to cryptocurrency businesses yet.

Colin Wu has tweeted that this decision of Alibaba Cloud will not have much impact on crypto exchanges, since their servers are located outside China.

However, crypto mining companies will have to find another cloud service provider.

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About the author

Yuri is a crypto journalist interested in technology and technical innovations. He has been in crypto since 2017. Believes that blockchain and cryptocurrencies have a potential to transform the world in the future in many of its aspects. ‘Hodls’ major cryptocurrencies and has written for multiple crypto media outlets. 

His articles have been quoted by such crypto influencers as Tyler Winklevoss, John McAfee, CZ Binance, Max Keiser, etc.

Currently Yuri is a news writer at U.Today and can be contacted at yuri.molchan@u.today.