BeePool, Ethereum's fourth largest mining pool, closed amid cryptocurrency transfers in China. The China-based Ethereum manufacturing facility announced on Tuesday that it will cease operations "in response to the latest regulatory guidelines.
BeePool, Ethereum's fourth largest mining pool, closed amid cryptocurrency transfers in China. The China-based Ethereum manufacturing facility announced on Tuesday that it will cease operations "in response to the latest regulatory guidelines". Effective immediately, new user registration and addition of sub-accounts for existing users will be suspended, and all mining access servers are expected to cease operating on October 15th. The announcement comes just one day after it became known that SparkPool, Ethereum's second largest mining pool, will be closing for the same reason at the end of the month. Between them, BeePool and SparkPool make up more than a quarter of Ethereum's hashrate.
After a lull in the crackdown on crypto, it became clear last weekend that the People's Bank of China is stepping up a number of new measures and promoting greater coordination between departments to suppress cryptocurrencies. Such actions aim to disrupt payment channels and remove relevant websites and mobile applications in accordance with the law. The fight against mining has been centered around Bitcoin mining for months, which has resulted in huge mining results in the country. Now the Chinese government's focus seems to have shifted to Ethereum. On Monday, media in Guangming reported that authorities in the Inner Mongolia Autonomous Region had seized 10,000 ether extraction machines from a warehouse following signals. The miners use 1104 kWh of electricity.
According to the publication, Mongolia's internal authorities have so far completed 45 virtual currency extraction projects, saving 6.58 billion kilowatt hours of electricity per year, which is equivalent to two million tons of standard coal according to retail stores. The suppression helped the price of ETH fall below $3,000 yesterday and is currently trading at $2,863.71, according to CoinGecko. BeePool has been in operation for four years and currently the production pool accounts for 6.7% of Ethereum production, with over 3,000 units mined as of last week. While production is already profitable, the introduction of hard for loading from Ethereum London has reduced profits as miners receive less rewards for each block.
The next stage of the ongoing blockchain upgrade to ETH2 was announced today in October. Miners are further removed from transitioning to proof-of-stake. Chinese e-commerce giant Alibaba is next to complete cryptocurrency services in response to the ongoing crackdown in China. Chinese multinational e-commerce company Alibaba Group Holding has opened a new non-mixed token market (NFT) that allows brand owners to sell token licenses for their intellectual property., The new NFT marketplace, called Blockchain Digital Copyright and Asset-Trade, can be accessed via Alibaba's auction platform. NFTs launched through the platform will be posted on New Blockchain for Copyright, a distributed ledger technology platform centrally managed by the Copyright Committee of the Sichuan Blockchain Association.
The market hopes to appeal to writers, musicians, artists and game developers, according to a report by Alibaba's South China Morning Post (SCMP) newspaper. The market is now active and is home to several NFTs that will be auctioned next month. Applicants must pay a deposit of 500 yuan (approximately $77) to submit an offer. Each upcoming auction has a minimum price of $15 each. Shoppers can view their collections via the Bit Universe crypto portfolio app built into WeChat.
Regarding emerging markets, SCMP reporter Josh Yee tweeted that “although the technology itself does not prevent unauthorized copying. The sale includes full ownership of the work acquired through the platform. "Many of the NFTs on display don't reveal what rights are granted to buyers, and one NFT even appears to be displaying Star Wars fan art without permission. While this is Alibaba's biggest NFT announcement to date, many of the company's subsidiaries have launched unmixed tokens.
In July it was reported that e-commerce platform Alibaba Taobao showcased NFT for the first time at its annual Maker Festival, which celebrates Chinese art and entrepreneurship. The event hosted an NFT-based real estate sale by Chinese artist Huang Heshan. That same month, SCMP launched an NFT project called Artifact, which includes symbolic historic moments reported through its 118-year-old archival publications, such as the 1997 transfer of Hong Kong from Britain to China. Alibaba officially announced on Monday that its platform will ban the sale of cryptocurrency miners and block categories of miners and blockchain accessories from their website on October 8. Alibaba will not only stop selling cryptocurrencies, but will also ban the use of its platform to sell large cryptocurrencies such as Bitcoin (BTC), Ether (ETH), Litecoin (LTC) and smaller coins such as Quark (QRK).
The new restrictions include, among other things, hardware and software related to cryptocurrency mining, as well as relevant lessons, guidelines and strategies, the statement said. All sellers who continue to list crypto miners or related products on the Alibaba platform after October 15 will face sanctions under the applicable rules, the company warned in a detailed description of the new restrictions. Some of the sanctions listed include banning stores, freezing and closing merchant accounts to circumvent new rules, such as intentionally placing relevant products in other categories, Alibaba said. The company found that recent policy changes are consistent with compliance issues with product listings and transaction processing.
“Members are responsible for complying with the relevant laws and regulations applicable in each country of sale. We will monitor policy changes in each country and adjust our control policies accordingly,” the company said. Alibaba did not immediately respond to a request for comment. Alibaba's move comes shortly after the Chinese government announced a new set of measures to combat cryptocurrency adoption and on Friday declared all cryptocurrency transactions in the country illegal. In response to the cryptocurrency update, major crypto exchanges such as Binance and Huobi closed several services in mainland China, while Sparkpool, the world's second largest Ethereum mining pool, announced a full shutdown.