Founded in 2016, the Chinese ether mining pool Sparkpool announced that it would cease operations both domestically and internationally.
As recently as last week, Sparkpool was the largest Ethereum pool in the world, but now its hash rate is rapidly declining. In the last 24 hours alone, the decline was 8%. Within 7 days, Sparkpool added over 20% of the blocks to the Ethereum network.
The company explained that due to pressure from the authorities, they have already stopped the connection of new miners from China. By the end of the month, the pool plans to shut down all miners, regardless of their location. This is the only way, according to Sparkpool, to “comply with regulatory requirements as much as possible.”
— SparkPool (@sparkpool_eth) September 27, 2021
In a statement signed in mid-September and released last week, the People’s Bank of China and the National Reform and Development Commission unveiled a detailed plan to eliminate mining at the provincial and municipal levels. In the draft version of the guide, the commission recognized mining as an undesirable activity back in 2019, but then it was removed from the final version of the document.
The regulator noted that it effectively copes with the tasks set, but the miners continue to operate at the underground level:
“While fixing the situation with centralized large-scale miners is successful, mining is gaining new characteristics, including becoming decentralized, small-scale and well-hidden, which makes it difficult to detect. In the future, we will develop a long-term mechanism to optimize new approaches with the participation of various government departments, including services in the areas of finance, energy, business, Internet, market surveillance and taxation. “
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