Crypto opportunism – The misfortune of Chinese bitcoin miners has made some Thai entrepreneurs happy, taking advantage of the umpteenth crackdown on cryptocurrency in China. But can Thailand become a new paradise for crypto companies?
More Profitable Cryptocurrency Mining Without China
Al Jazeera’s December 29, 2021 article reports cases of entrepreneurs in Thailand who have benefited from the surrender of Chinese miners following the new cryptocurrency ban in the country in September 2021. A “coordination mechanism” has been put in place by 10 Chinese state authorities, including the People’s Bank of China, to prevent financial actors from participating in any cryptocurrency transaction .
A minor living in Thailand declared that he had recovered in three months, his investment of $ 30,000 to create a small cryptocurrency mining unit using solar energy.
The exit of Chinese miners, which was accompanied by a decrease in the difficulty of hashing, has also benefited miners around the world who have remained active, and who have been able to mine bitcoin relatively cheaply.
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Competitively priced ASIC miners in Thailand thanks to China
Another entrepreneur in Thai, Pongsakorn Tongtaveenan, has sold hundreds of Chinese ASIC miners to small local investors. According to Pongsakorn, the price of ASICs fell by 30%, following the shutdown of mining companies in China, before returning to normal.
The entrepreneur mentions two factors that would explain the growing popularity of detai miningl In the country: Residents are looking for a new stable source of income during the pandemic, and investors are more optimistic about the future of cryptocurrencies.
Cryptocurrencies in Thailand: between adoption and restrictions
This growing interest of Thais in cryptocurrencies, however, contrasts with the position of the country’s authorities towards them. Bank of Thailand Governor Sethaput Suthiwartnarueput said in a December 14, 2021 interview with the Bangkok Post that his institution would publish a consultation paper in January 2022 containing the “red lines” for cryptocurrencies.
The central bank is working with the Thai SEC and the Ministry of Finance to define specific restrictions to cryptocurrencies. The latter cannot, for example, become a means of payment in the country.
However, the Thai authorities do not seem to want to ban the country’s cryptocurrencies, aware of the opportunities offered by the sector. The Tourism Authority in Thailand is also studying the advantages relating to the creation of a utility token to revive tourism.
These Thai entrepreneurs have “felt” the opportunity offered by bitcoin and its cadets. Start accumulating and trading your first BTC and ETH by registering on the FTX reference platform by benefiting from a lifetime reduction on your trading fees (affiliate link).