Following a Chinese government announcement 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 held by Suncity Group Executive Director, Alvin Chau Cheok Wa – is focused 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 (US$12.8 million) worth in shares to purchase cryptocurrency mining equipment from two companies registered in the Cayman Islands.
One of the companies is mainly engaged in the supply of equipment for the operation of cryptocurrency mining farm in Inner Mongolia, Xinjiang and Sichuan province.
However, according to a recent announcement by Sun International, after a statement made by the State Council’s Financial Stability and Development Committee of the People’s Republic of China on May 21 on bitcoin mining and trading activities, it decided to instruct the relevant service provider to suspend the cryptocurrency miner operating service.
In this statement, the State Council announced that Chinese authorities will “crackdown on bitcoin mining and trading behaviour, and resolutely prevent the transfer of individual risks to the society”.
‘The group will support and follow the direction of the PRC Government and stop the related mining activities in the PRC. In this regard, the group will discuss with the relevant service provider and take necessary actions with a view to continuing its cryptocurrency mining activities in other country(ies) or region,’ Sun International added.
Sun International Group Limited is a subsidiary of First Cheer Holdings Limited, a company held equally by Alvin Chau and Cheng Ting Kong, the Chairman and Executive Director of Sun International.
China is the world‘s largest cryptocurrency mining location, accounting for 65 per cent of the bitcoin hash rate, a unit of measure for the processing power used by the bitcoin network to verify transactions and mine new tokens of the cryptocurrency, according to estimates by Cambridge Bitcoin Electricity Consumption Index.
Despite bans on financial transactions of bitcoin and other cryptocurrencies since 2019, several cryptocurrency mining farms have operated in Inner Mongolia, Sichuan, Xinjiang and other mainland locations until now.