India’s bitcoin mining software maker Bitmain is planning to close its Indian operations and shut down its manufacturing operations in a move that will see the cryptocurrency lose the ability to compete with other cryptocurrencies.
A statement on Bitmain’s website said that the company will start “ceasing production of its mining hardware and components” by the end of October, with all remaining operations to be mothballed.
“Bitmain will no longer manufacture, process, sell, or sell Bitmain ASICs or other mining hardware products,” the statement said.
“We will also no longer sell Bitmine-branded hardware and/or hardware components to our customers in India.”
The announcement comes just days after the Indian government announced it will start regulating Bitcoin in the country.
The move comes as the country’s central bank has announced it is reviewing the regulation of virtual currencies and other cryptocurrencies as part of a broader plan to make the currency more attractive to investors and companies.
India’s central government has previously said it will not allow Bitcoin or any other cryptocurrency to become a currency, saying it will use a “firm stance” on regulation.
The country’s government said it would start testing Bitcoin and other virtual currencies, including Ether and Litecoin, next year and could eventually allow for the use of other digital currencies, such as Ethereum, Ripple and Monero, in the future.
Indian regulators said that Bitcoin and virtual currencies such as Ether, Litecoin and Moneruys are currently illegal, and are a threat to the country and its economy.
The central bank will decide on whether to regulate the cryptocurrencies in a few months.
The government has also ordered companies to provide more details on the country-specific regulations on virtual currencies.
In a statement, the ministry said it is in the process of creating a virtual currency advisory council.
Bitcoin, the second largest cryptocurrency in terms of market cap, is also expected to face a tough battle with Ethereum, the fourth largest cryptocurrency.