Sparkpool, one of the largest Ethereum mining pools, has announced that the pool will no longer serve miners from China. This decision is due to the pressure of the regulators of the Middle Kingdom.
Yesterday, the People’s Bank of China (PBOC) published a document expanding the ban on cryptocurrency transactions for businesses and recognizing them as illegal financial activities. It seems that the Sparkpool management decided not to wait for the attention of regulators and announced the termination of services for miners from China.
At the moment, it is Sparkpool, which is headquartered in the Chinese city of Hangzhou, that is the largest mining pool for Ethereum mining – miners are connected to it, generating about 20% of the hash rate of the second cryptocurrency network.
The Chinese authorities banned the mining of cryptocurrencies in the country this summer, which led to the “great exodus” of miners from China. At the same time, the NBK admits that there are a lot of small mining farms in the country:
“Bans on large-scale centralized mining operations have been successful, but now mining has changed, farms have become small and decentralized, making them more difficult to detect. We are working with multiple ministries on a long-term mechanism to locate these farms. ”
Earlier, Wen Xinxiang, director of payments and settlements at the NBK, expressed concern about the growing popularity of cryptocurrencies and stablecoins. In his opinion, digital assets can threaten the traditional financial system.
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