China’s restrictive market measures are directly affecting cryptoasset mining. Recently, the country lost two mining pools that equal 25% of the total power of the Ethereum network.
The Ethereum network mining pools, SparkPool and BeePool have left the Asian country after new statements against cryptoassets were issued by the People’s Bank of China.
Considered the second largest Ethereum mining pool on the market, SparkPool recently announced that it would end its activities in China. In addition to condemning cryptoasset transactions, the country has restricted mining activity in 2021.
As a result, China has lost the infrastructure responsible for almost 25% of the network’s processing power. With the announcement of SparkPool’s departure from Chinese territory, BeePool also stated that is shutting down its activities in the country.
Mining pools and exchanges leave China
BeePool has forecast to cease operations on October 15, 2021, and announced that it is closing the mining pool in China due to regulatory policies imposed by the country. Similarly, SparkPool reported that the exit from China was prompted by the recent tightening of rules in the country.
This is not the first time that the country has issued announcements against the cryptoasset market. Since 2014, China has placed restrictions on various activities related to digital assets, causing exchanges such as Huobi and Binance to announce that they will no longer serve residents in Chinese territory.