The second-largest Ethereum mining pool, SparkPool, has revealed plans to shut down mining activities amid the ongoing Chinese crypto ban. The closure will also extend to its mining activities around the world. Until its latest announcement, SparkPool accounts for 22% of Ethereum’s global hash rate behind the largest mining pool, Ethermine.
In its Monday announcement, SparkPool stated that it has restricted access to new miners in Mainland China in the wake of the 19th crypto ban from Chinese authorities. The ban was issued on Sept. 23 sparking reactions of shock from the global crypto community given that Chinese authorities have banned cryptocurrencies multiple times before now.
SparkPool to Halt Ether Mining Activities By Thursday
The suspension of its Ether mining activities will continue until Sept. 30 when it will finally close shop on existing mining pools in China as well as in other regions outside the former. SparkPool added that these measures will be taken to protect users in line with regulations. The Ether mining giant equally revealed that it will notify all users about further updates on the suspension via emails, public statements and internal messages.
SparkPool was established in China in 2018, positioning itself as one of the world’s largest miners alongside Ethermine. As of press time, SparkPool accounts for 22% of Ether’s global hash rate, trailing behind Ethermine which boasts 24% out of the hash rate, according to available data.
Other Consequences Result from China’s Latest Ban
China’s hostile disposition toward cryptocurrency has created a ripple effect, more so its latest ban. In light of the latest ban, crypto exchanges are beginning to close shop on their activities. According to reports, some leading crypto platforms have halted registrations for new users in the country. However, activities have continued in the city of Hong Kong, reports noted.
Already, Bitcoin mining is outlawed in China via an order in May, which not only instigated reactions but caused cryptocurrencies to heavily spiral downwards. At the time, king of cryptocurrencies, Bitcoin lost more than 50% off of its price. However, the latest ban had a less significant effect on the prices of cryptocurrencies given that the impact of the announcement had worn off.
SparkPool’s suspension comes on the heels of the proposed plans by Ethereum to transition from a proof-of-work consensus algorithm to a proof-of-stake model by 2022. The transition is part of a larger plan to launch an Ethereum 2.0 update. Just as Bitcoin’s mining difficulty and hash rate were affected following China’s ban in May, SparkPool’s closure is sure to have the same effect on Ether mining. Meanwhile, Ethereum is trading at $3,008 as the crypto market continues to fluctuate.