Sparkpool, the world’s second largest Ethereum mining pool, is suspending operations due to the ongoing decline in the number of cryptocurrencies in China.
The mining pool officially announced that it has suspended access to new users in mainland China on Monday in response to new measures taken by the Chinese authorities to combat cryptocurrency in the country.
After imposing the first restrictions last Friday, Sparkpool will continue to shut down services and plans to suspend users of existing mining pools in China and abroad on Thursday.
According to the announcement, the measures are aimed at ensuring the safety of user assets in accordance with “regulatory policy requirements.” “More details of the closure will be communicated via announcements, emails and notices on the site,” Sparkpool said.
SparkPool was launched in China in early 2018 and has become one of the largest Ether (ETH) mining pools in the world, along with the largest Ethereum Ethermine mining pool in the world. According to Poolwatch.io, at the time of writing, SparkPool mining accounts for 22% of Ethereum’s global hash rate, slightly lower than Ethermine’s 24% share.
This news comes in the middle of a statement issued by the Chinese government, which intensified its negative attitude towards cryptocurrency by declaring all crypto-related transactions illegal in the country last Friday. Some of the largest cryptocurrency exchanges, such as Binance and Huobi, later suspended registrations for new accounts from mainland China, although they are still serving users in Hong Kong.
Related Topics: Ethereum Falls More Than Bitcoin as China Boosts Ban on Crypto and ETH/BTC at 3-week Lows
SparkPool did not immediately respond to Cointelegraph’s request for comment.
The SparkPool shutdown comes as Ethereum continues to move from a consensus mechanism of work to a Proof-of-Stake model in 2022, part of a long-planned update known as Ethereum 2.0. As previously mentioned by Cointelegraph, Ethereum miners will not have much choice after Ethereum 2.0 finally arrives because their mining hardware will become obsolete.