A few days after Sparkpool, another ETH mining pool called BeePool was closed due to harsh conditions and the ban in China. Both Alibaba and Binance have responded to the crypto crackdown, so today we read more on our latest ETH news.
Last week, China started a new war on cryptocurrencies and crypto companies are starting to feel the effects. One day after SparkPool, the second largest ETH mining pool in the world, announced its closure, the fourth largest mining pool has joined. China-based BeePool announced it would close before midnight and said it has stopped registering new users. “According to data from the block explorer Etherscan, two mining pools are responsible for a quarter of all ETH mining.
Mining is a process in which the transactions in the ETH network are processed and confirmed. People can add computing power to secure the network, and the more they give, the better their chances of gaining all of the ETH chained from newly generated blocks. Mining pools work by allowing people to pool their computing power and then share the rewards. The closure of China’s two largest mining pools comes as the Chinese government has just started cracking down on cryptocurrencies. Last week we saw the People’s Bank of China spread a notice that all crypto-related activity was against the law.
The country has been cracking down on cryptocurrencies since 2017 when the PBoC banned financial institutions from conducting crypto transactions, but their efforts are only accelerating. Tehre last winter was a drop in Bitcoin’s hashrate, which is a measure of the processing power on the blockchain that correlates with the security of the network, as mining operations in areas with cheap electricity were announced. China’s three major payment partners, including the China Bankers Association, have repeated the ban.
Because of this, another ETH mining pool has been closed and Alibaba has also found that the sale of custom crypto devices will cease while Coingecko is blocked by Chinese government censorship. Major exchanges like Huobi and Binance have stopped registering residents in mainland China, and the prices of most cryptocurrencies are in the red.
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