Another Ethereum mining pool forced to close due to China crackdown

BeePool is closing, China’s fourth-largest Ethereum mining pool.

China’s Ethereum mining pool, based in China, announced Tuesday that it would suspend operations “in reaction to the most recent regulatory policies.”

Registration of new users and sub-accounts will cease immediately. All mining access servers will also cease operating after October 15.

This announcement comes just days after it was reported that SparkPool (the second largest Ethereum mining pool) would cease operations at the end of the month due to similar reasons.

BeePool, SparkPool, and others account for more that a quarter of Ethereum’s hashrate.
— September 28, 2021, (@beepools).

After a brief pause in its crypto crackdown, it was revealed that the People’s Bank of China was implementing a series of new measures. It also promoted stronger inter-departmental coordination in order to stop crypto activity. These measures are designed to block payment channels and dispose of relevant websites.

For months, the mining crackdown was focused on Bitcoin mining. This led to a significant exodus from the country of many mining operations. The Chinese government seems to have now shifted their focus to Ethereum.

Guangming reported Monday that Inner Mongolian authorities had taken 10,000 Ether mining equipment from a warehouse following a tip-off. The miners used 1,104 kWh of electricity.

The publication claims that Inner Mongolian authorities have closed 45 virtual currency mining sites so far. This reportedly saves 6.58 billion Kilowatt-hours per year.

CoinGecko reports that the ETH price dropped below $3,000 yesterday due to the mining crackdown. It is currently trading at $2863.71

BeePool was established in 2004 and currently holds 6.7% of Ethereum’s mining share. It has mined over 3,000 blocks in the past week.

Related: Alibaba will ban the sale of crypto miners amid Chinese crackdown

Mining is still profitable, but the introduction of fee burning at the Ethereum London hardfork has resulted in a decrease in profits. Miners now receive fewer rewards per block.

The October update to the blockchain’s ongoing upgrade of Eth2 was announced earlier today. The shift to Proof of-Stake will further marginalize miners.

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