Sparkpool to suspend all operations due to ongoing Chinese crackdown on crypto
The second largest Ethereum mining pool, Sparkpool, is reportedly suspending all its operations due to the continuing Chinese crackdown on crypto.
The platform has made an official announcement that it has blocked access for users in mainland China as a response to the Chinese government’s new measures in combatting crypto adoption through collaboration with multiple state agencies.
Sparkpool had announced a series of restrictions last Friday, and as per the latest reports, it is shutting down all its services for mining pool users both in China and elsewhere.
According to the latest reports, Sparkpool would notify details about the shutdown to its existing users through emails and in-site messages.
Initially launched in 2018 in China, Sparkpool had emerged as one of the biggest mining pools for Ether (ETH) mining, alongside the first largest Ethereum mining pool, Ethermine. While this report was being written, SparkPool’s mining power constitutes up to 22 per cent of Ethereum’s global hash rate, which is slightly lower than Ethermine’s share of 24 per cent.
The news has come amid the Chinese government reinstating its negative stance on cryptocurrencies by declaring crypto transactions and trading illegal in the country.
Some of the biggest crypto exchanges, including Binance and Huobi, have also suspended new account registrations from China. However, both are reportedly still servicing users in Hong Kong.
Sparkpool shutdown has come when Ethereum is continuing its switch to the proof-of-stake model from the proof-of-work consensus mechanism.
