Uncle Sam is cracking down on Bitcoin mining hardware, and the Customs and Border Protection, under the direction of the Federal Communications Commission, is seizing Bitcoin mining ASICs at U.S. ports of entry.
AI chips trigger crackdown
The crackdown initially targeted Bitmain’s Antminer S21 and T21 models last year, but has now expanded to include machines from MicroBT and Canaan, because the CBP is concerned about AI chips from Sophgo, a chip company facing trade restrictions, being used in these miners.
The CBP suspects that these units may contain unauthorized communications gear that doesn’t meet FCC regulatory standards.
One affected company reported that they had $5 million worth of equipment seized.
Asian ASIC manufacturers feeling the heat
Almost all Asian ASIC manufacturers are now experiencing customs clearance issues. Bitmain, the world’s largest Bitcoin mining equipment manufacturer with a 80% market share, is among those affected.
Bitmain had moved its manufacturing operations out of China after the first wave of Trump tariffs in 2018.
Canaan, a Nasdaq-listed company, and MicroBT, which assembles some of its products in U.S. factories, have stronger ties to the U.S. market.
What this means for the U.S. crypto mining industry?
Regulators are increasingly scrutinizing crypto mining hardware while enforcing American trade restrictions and communications rules, so industry players are closely watching these developments because they impact how mining equipment enters and is distributed throughout the United States.
This could create a competitive disadvantage for U.S.-based mining companies that rely on the latest ASIC miners. One source said that multiple clients have had hardware detained and that the custom clearance issues are now occurring at numerous ports.
In another part of the world, a fire in Bandar Puncak Alam city, Malaysia, led to the discovery of an illegal Bitcoin mining operation.
Investigators found nine Bitcoin mining rigs, blower fans, and a D-link router, all hooked up to an unauthorized power supply.
This adds to Malaysia’s growing problem with crypto-related power theft, a challenge that authorities are struggling to address.
