Popular VPN service to be shut down amid ongoing regulation

A popular VPN service provider has announced it will stop services from July 1 following a regulation that bans telecommunication companies and Internet access providers from setting up or renting special lines, including VPNs, to carry out cross-border operations without approval.

Green VPN, which many Chinese netizens had called the "best VPN," said in a statement on its official website on Thursday that the company has received a notice from the regulator to stop service from July 1.

After that, the China-based company will process users' applications for refunds, said the statement, adding that "the Green team will make a transformation and we hope to meet you again."

Another VPN service provider, VTRSpeed, announced on its website on June 16 that the company's IP addresses are facing a new round of blocks, with many IP addresses in the US and Hong Kong not accessible from the Chinese mainland.

The Ministry of Industry and Information Technology (MIIT) said in January that it will regulate the Internet services sector by clearing out illegal activities such as unlicensed business operations beyond their scope in the Internet Data Center, Internet Service Provider and Content Delivery Network service businesses, ending in March 2018.

Without approval, all basic telecommunication companies and Internet access service providers are barred from setting up or renting special lines (including VPNs) to carry out cross-border operations, according to the MIIT.

In recent years, more and more Chinese Net users have used alternative ways to surf the Internet by using mirror websites or VPNs. Many Net users are worried that other VPN services providers may also be affected due to the rules.