Another mining pool has reportedly shut down in China due to its intensified crackdown. BeePool, one of the largest ETH mining pools, will close its operations in the Asian country as anti-crypto regulations continue. The Beijing-based mining pool revealed its decision on Tuesday, September 28.

The mining firm also halted the registration of new users and the opening of sub-accounts for existing users, with mining access servers ending on or before October 15. This announcement comes after another ETH mining pool, SparkPool, announced that it would be suspending its operations by the end of September for a similar reason. BeePool and Sparkpool account for over one-quarter of ETH’s hash rate. 

China’s Renewed Clampdown Gets Deadlier 

The recent announcement by the People’s Bank of China on the cryptocurrencies ban shows that the highly-dense country isn’t prepared to back down on its claim that cryptos pose a tremendous danger to the traditional financial structure. Although the country is known for enacting a similar ban since 2009 when the blockchain industry was relatively new, last week’s Friday’s announcement summed up its effort to continue to suppress the industry through Inter-departmental collaboration. 

The new measures, as enumerated by the PBoC aim to halt cryptocurrency funding from banks to buyers, eliminate payment channels, and remove any website or platforms engaged in the trading of digital assets. The decisions of SparkPool and BeePool to shut down their operations are only a tip of what is about to come in the crypto industry. 

The mining crackdown began in June when the PBoC banned miners from engaging in mining. The Chinese government stated that the main reason for its decision was the amount of energy used in mining. China, which still relies heavily on coal for its numerous industries, disclosed that mining not only consumes energy but makes the environment unclean and unhealthy. 

However, many crypto experts became doubtful about the comment, even though there was an atom of truth. They pointed out that the probable reason for the ban was to push forward the launch of China’s digital Yuan. The news to promote China’s CBDC could also be the reason for the recent ban on cryptocurrency. 

The war on mining saw different miners leave the country for other friendlier locations, such as the U.S., Russia, and other parts of Europe. Now, China has diverted its attention towards Ethereum Mining pools. According to Guang Ming media, authorities reportedly seized more than 10k ETH mining machines from a storage facility after a tip-off. The miners consumed over 1,104 kWh of electricity. 

The hit on Ethereum resulted in its price decline, trading below $3k. CoinGecko reports that ETH is trading close to the $3k level. BeePool has been running for four years and accounts for 6.7% of the ETH mining share. Last week, it mined over 3k blocks.

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