World's Largest Ethereum Mining Pool Announces that it Would no Longer Support Chinese Miners

Kavya  |  Sep 25, 2021

The world’s largest Ethereum mining pool announced that it would no longer support Chinese miners in mainland China. 

The Chinese Miners Would No Longer Get Support From The World’s Largest Ethereum Mining Pool

Hangzhou-based Sparkpool stated in a statement on Friday that it will provide additional information regarding the suspension. 

At the same time, Sparkpol stated that the decision was made in reaction to China’s most recent regulatory policy declarations. 

The announcement comes only hours after the People’s Bank of China (PBoC) and the National Development and Reformation Commission (NDRC) issued comments warning of more restrictions on cryptocurrency trade and mining. 

Currently, one of the world’s largest Ethereum mining pools, Sparkpool is positioned on a real-time hash rate, accounting for around 20% of the network's total, and is closely followed by Ethermine. 

The NDRC Mentions Methods For Implementing The Mining Crackdown

The NDRC, China's national macroeconomic planning body, has laid out precise methods for enforcing the mining crackdown at the provincial and local levels in a statement signed in early September but released on Friday.

In the NDRC's newest Industrial Restructure Guidance, one of the numerous specific measures once again mentions crypto mining as an industry that would be abolished.

The Guidance provides a high-level legal foundation for the province and local governments to act on when deciding whether sectors should be supported, kept, or abolished.

The NDRC first included bitcoin mining in a draught Guidance in 2019, stating that it should be phased out, but the agency deleted the wordings later that year in the completed version.

According to the transcript of the press conference published on Friday, the NDRC also stated at a recent press conference that while it has been effective in cleaning up big scale crypto mining facilities, there are still activities that have gone significantly under the radar.

“While the rectification over centralized large scale mining operations has been effective, crypto mining activities now have new characteristics, such as becoming decentralized, small-scale and well hidden, which increases the difficulty on spotting them precisely,” the agency noted in the Q&A, adding:

“Next, we will work on a long-term mechanism to optimize new techniques with different government agencies including the finance, energy, business, internet, market supervision, and taxation bureaus.”

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