Following China’s crypto-trading prohibition, Sparkpool, the world’s second-largest mining pool based on the Ethereum blockchain, is blocking access for users in the nation. Sparkpool will shut down all of its services in China in two days, on September 30. The company, which is situated in Hangzhou, China, was launched in early 2018 and has since grown in the global market. For the time being, the market has been experiencing volatility as a result of China’s move to make crypto trading a criminal violation on September 24.
According to reports, Sparkpool’s decision to stop operating in China could harm Ethereum’s hash rate, which is a metric for a crypto miner’s performance that is critical to the network’s security.
The corporation justified its decision as a measure to protect the crypto assets held on its servers by Chinese consumers. Despite the fact that China has prohibited cryptocurrency trading, crypto owners have been allowed to keep their digital assets for the time being.
Sparkpool will send out information on the clearing and refunding rules to its Chinese subscribers in the coming days.
China had the world’s biggest number of Bitcoin miners until recently. However, the government has been cracking down on it in recent years, and now appears to be focused on cryptocurrency’s impact on the environment in specific.
Many countries, notably China, Russia, and Morocco, have expressed worry about the large energy consumption required by mass-level crypto trading and its consequences on greenhouse gas emissions.
The crypto sector is expanding and being adopted in different parts of the world, including Africa, India, Vietnam, and Pakistan.
El Salvador, a Central American country, became the first in the world to legalize Bitcoin as a legal payment option in September.