The world’s largest Ethereum mining pool has announced that it will no longer offer services to miners based in mainland China.
Hangzhou-based Sparkpool said in an announcement on Friday it would release more details about the suspension. At the same time, Sparkpool said the decision was in response to recent regulatory announcements from China.
The news comes just hours after the People’s Bank of China and the National Development and Reformation Commission (NDRC) dropped statements of further crackdowns on crypto trading and mining activities.
Sparkpool is currently the largest Ethereum mining pool based on real-time hash rate at press time, which made up about 20% of the total network and is closely followed by Ethermine.
In a statement signed in early September but released on Friday, the NDRC, China’s central macroeconomic planning authority, set out detailed measures on how it will enforce crackdown on mining areas at the provincial and municipal levels.
One of several specific measures again includes crypto mining as an industry, which is to be eliminated in the latest Industrial Restructure Guidance from the NDRC.
The guide serves as a high-level legal basis for provincial and local governments to decide which industries should be encouraged, preserved and eliminated.
In 2019, the NDRC initially included bitcoin mining in a draft guideline stating that bitcoin mining should be phased out, but the agency removed the wording in the final version later that year.
The NDRC also said in a recent press conference that while it has so far been effective in clearing large crypto mining facilities, there are remaining operations that are well below the radar according to the minutes of the press conference released on Friday.
“While rectification via centralized large-scale mining operations was effective, crypto mining activities now have new features such as adding:
“Next, we’ll be working with various government agencies, including finance, energy, business, internet, market and tax authorities, on a long-term mechanism for optimizing new technologies.”