After four years running strong, BTCC is shutting down its cryptocurrency mining pool. The cryptocurrency exchange launched its operations in 2014 and has indicated that the current market is not conducive to continue operations. It added that all mining servers will be turned off on November 15 and the BTCC Pool will cease to exist “indefinitely” after November 30.
In preparation to the closure, BTCC is asking all miners using the platform to transfer their hash power to other options prior to November 15. Any outstanding profits from previous operations will be paid out “in time.”
According to an announcement on the company’s website, “Today, we regret to announce that due to business adjustments, the BTCC pool will shut down all mining servers on November 15 and will cease operations indefinitely from November 30. In order to avoid unnecessary losses, please miners to complete the power switch before November 15th, and bind the mining revenue address before November 20th, we will release the profits of all miners in time.”
This past June, BTCC entered into an agreement to sell 49% of its stake in BTCC Pool to a financial service firm out of Hong Kong, Value Convergence Holdings. That deal was purported to generate as much as $17 million to BTCC when consummated, but no information has ever been produced that the deal was signed.
BTCC Pool covered around 1.1% of Bitcoin Core’s (BTC) hash power in June, according to statistics provided by blockchain.info. However, according to the most recent information, the percentage of hash power controlled by the pool was not enough to even register on the blockchain.info scale.
BTCC was previously known as BTC China. It was one of the first, and one of the longest continuously running, crypto exchanges in China. When regulators began to crack down on crypto trading in September of last year and stopped all trading, the company took a huge hit and was sold to a Hong Kong-based blockchain investment fund this past January. The new owner relaunched the exchange in July and has plans to introduce its own digital currency.
This may not be the end of the BTCC Pool. It ended its announcement by telling website visitors, “[We] will see you again!”
Note: Tokens on the Bitcoin Core (segwit) Chain are Referred to as BTC coins. Bitcoin Cash (BCH) is today the only Bitcoin implementation that follows Satoshi Nakamoto’s original whitepaper for Peer to Peer Electronic Cash. Bitcoin BCH is the only major public blockchain that maintains the original vision for Bitcoin as fast, frictionless, electronic cash.
The first cryptocurrency exchange to have launched in China is now on the move. BTCC, which was previously called BTC China, is preparing to expand into South Korea, according to a report in The Investor.
The exchange anticipates offering beta services by the end of this month and will then make an official launch sometime in November. The BTCC website indicates that its South Korean operations will include a trading platform, a mining pool, a wallet service and even a consumer payments platform. The company adds, “BTCC is establishing an on/offline payment system using cryptocurrency… [and is] is expanding services for real-life use.”
In Hong Kong, where BTCC is now headquartered, investors are able to trade in five cryptocurrencies against the US dollar. These include Bitcoin BCH, Bitcoin Core (BTC), Ether (ETH), Litecoin (LTC) and DASH. There was no word if the same digital currencies will be supported on the South Korean exchange.
According to the new BTCC Korea CEO, Lee Jae-bum, “Cryptocurrency exchanges are facing a turning point due to a downturn in local exchanges while global exchanges are making a leap here. BTCC Korea will be able to present a new strategy and vision of crypto exchanges.”
BTC China has been around since 2011. It was previously one of the top-ranked exchanges in the country until regulators and China’s central bank began to crack down on crypto operations. The exchange closed its doors in September of last year, but started to see new life this past January after it was purchased by a blockchain investment fund out of Hong Kong. Along with the purchase came a rebranding to BTCC, a new mining pool and the Mobi cryptocurrency wallet. Its trading platform cranked back up this past July.
The expansion into South Korea comes at a time when regulators are tightening the screws on the cryptocurrency industry. Several high-profile exchange hacks, coupled with allegations of fraud, have led authorities to take a strong position against crypto. However, lawmakers are now working to provide better oversight and are prepared to define cryptocurrency exchanges as “crypto asset exchanges and brokerages.” This will “recognize [them] as regulated financial institutions,” instead of as “communication vendors,” their former classification.
In November, South Korean regulators are also expected to deliver their decision on the initial coin offering (ICO) space. ICOs have been banned since September of last year, but that ban could be lifted next month.