Chinese e-commerce giant Alibaba announced on October 27 that it will stop selling crypto asset mining machines on its platform from October 8. The move came after China banned virtually all crypto-related activities in the region.
In the official announcement, Alibaba noted that the People’s Bank of China and other regulators’ policy circular on crypto trading was the factor for its decision to halt the selling of mining equipment. The notice read:
“[A]fter thorough evaluation, taking into account the instability of laws and regulations on virtual currencies and relevant products in various international markets, Alibaba.com will prohibit the sale of virtual currency miners in addition to the prohibition against selling virtual currencies such as Bitcoin, Litecoin, BeaoCoin, QuarkCoin, and Ethereum, which include but are not limited to: 1) Hardware and software used to obtain virtual currencies such as Bitcoin miners ; 2) Tutorials, strategies, and software for obtaining virtual currencies such as tutorials on mining.”
In Alibaba’s product category, the company will remove the ‘blockchain miner accessories’ and ‘blockchain miner’ categories from its website.
An order to suspend mining operations in China was issued in June this year citing environmental reasons. The ban resulted in many companies closing down their operations or moving overseas.
The new policy resulted in the amount of Bitcoin mining in North America, Kazakhstan, and Russia increasing.
Several mining pools have also shut down their operations including the second largest Ethereum mining pool Sparkpool. The pool recently announced that it would shut down its operations for both the Chinese and non-Chinese residents.
Before the announcement, Sparkpool accounted for more than 22% of Ethereum’s hashrate. It has since dropped by more than 8%.
Major crypto exchanges Huobi and Binance have also stopped traders from registering new accounts using mobile phone numbers in mainland China. According to the South China Morning Post, as of 26th, Hong Kong users will still be able to sign up on both platforms.