Notable Statement from Major Company for Ethereum: “ETH Doesn’t Follow Our Rules!”

Ethereum, It appears to be in danger of being kicked out of the cloud network provider that powers around 16% of its blockchain.

Cloud Company Hetzner Says Ethereum Staking and Mining Is Against Its Rules

Hetzner, a Germany-based cloud services firm, stated in a Reddit post this week that the terms of service are specifically cryptocurrency He said he has banned mining, as well as staking, which is the approach he will soon pass for managing the Ethereum Blockchain.

Hetzner said in his statement:

“The use of our products for any mining-related application, even remotely related, is not permitted. This includes ETH. This includes Proof of Stake and Proof of Work and related applications. Trade is also included.”

If ETH is forcibly removed from Hetzner, the areas where the ETH network is located will be further restricted and the decentralization feature of the network will be questioned.

16% of ETH Nodes Work on Hetzner

According to ethernodes.org, more than 60% of Ethereum nodes (computers that process transactions on the network) are hosted by cloud service providers.

About 16% of these cloud-hosted ETH nodes are owned by Hetzner, second only to Amazon Web Services at 53%.

It’s unclear how long the ban has been in effect or whether the firm has taken action to enforce it.

“We are aware that there are a large number of Ethereum users at Hetzner at the moment and we are discussing among ourselves how we can best address this issue,” Hetzner said in his post.

Hetzner’s announcement comes just after recent US Treasury sanctions against crypto addresses related to Tornado Cash, an ETH-based tool that allows users to send and receive money without leaving any traces.

*Not investment advice.