At the beginning of 2021, BIT Mining Limited, which was previously called 500.com; bought a mining pool that was withdrawn as compensation to the co-founder of Bitmain, Jihan Wu BTC.com.
According to the press release, in accordance with regulatory requirements, the structure will stop registering new users from mainland China. And also will begin deleting existing accounts from October 15, 2021.
The company plans to step up its efforts
“In the future, the company plans to step up its efforts to expand its business and accelerate global development,” the statement said.
Earlier in September, it became known about the next Chinese repressions against the cryptocurrency industry. In addition, its contribution to the Chinese economy is “insignificant”, and the risks associated with cryptocurrency transactions are very high.
Moreover, The People’s Bank of China (PBOC) described as illegal the activity of platforms that provide the exchange of digital assets among themselves or for fiat. Prior to that, the director of the PBOC’s Payments and Settlements Department, Wen Xinxiang, called cryptocurrencies and stablecoins a threat to the traditional financial system.
Chinese wave of repression
Against this background, journalist Colin Wu reported that the F2Pool mining pool; “will not provide services to China” and may close or block accounts. On October 15, he clarified that this would happen before December 31.
Wu also posted a screenshot of a message from Internet giant Tencent. In accordance with the requirements of the authorities, the company blocked accounts that “send information about cryptocurrencies and promote mining.”
At the end of September, the largest Ethereum mining pool SparkPool announced its termination. Previously, SparkPool refused to serve users in mainland China. Thus, representatives of the pool explained this decision by the desire to “comply with the latest regulatory requirements”. According to media reports, more than two dozen crypto companies have announced their withdrawal from the Chinese market due to a new wave of repression against the industry.