Sparkpool ceases operations after China’s crypto ban

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Sparkpool, the world’s second-largest mining pool based on the Ethereum blockchain, is shutting down members’ access to China following the country’s ban on crypto-trading. In two days, by September 30, Sparkpool will end all services from China. The company, based in the Chinese city of Hangzhou, was founded in early 2018 and has grown into the global market. For now, following China’s decision to make crypto trading a punishable offense on September 24, the market has seen some swings.

According to news portal CryptoPotato.com, Sparkpool’s decision to cease operations in China could damage Ethereum’s hash rate, which is essentially the performance measure of a crypto miner seen as crucial to the security of the network.

The company backed its move as a way to protect crypto assets stored by Chinese users on its servers. Even though China has restricted cryptocurrency trading, the country has allowed cryptocurrency owners to hold digital assets for now.

In the coming days, Sparkpool will contact its Chinese users with information on the compensation and refund rules.

Until recently, China was home to the largest number of Bitcoin miners in the world. However, the government has cracked down on this problem for the past two years and now appears to be particularly focused on the environmental impact of cryptocurrency.

The massive energy consumption required by mass-level crypto trading and its effects on greenhouse gas emissions have been of concern to many countries, including China, Russia, and Morocco, among others.

In other parts of the world like Africa, India, Vietnam, and Pakistan, among others, the crypto space is experiencing expansion and adoption.

Earlier in September, El Salvador, a country in Central America, became the first in the world to legalize Bitcoin as a legal payment option.

Interested in cryptocurrency? We discuss all things crypto with WazirX CEO Nischal Shetty and WeekendInvesting Founder Alok Jain on Orbital, the Gadgets 360 podcast. Orbital is available on Apple Podcasts, Google Podcasts, Spotify, Amazon Music and wherever you get your podcasts.

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