Sparkpool says it will reach out to users in China with information on what to do next.
Based out of China's Hangzhou city, Sparkpool was founded in the beginning of 2018
Sparkpool, the world's second-largest mining pool based on Ethereum blockchain, is halting access for members in China following the ban on crypto-trading imposed by the country. In two days, by September 30, Sparkpool will be winding up all of its services from China. The company, based out of China's Hangzhou city, was founded in the beginning of 2018 and grew in the global market. For now, following China's decision of making crypto trading a punishable offense on 24 September, the market has been witnessing fluctuations.
As per news portal CryptoPotato.com, Sparkpool's decision to cease operations in China could lead to damages to Ethereum's hash rate — which is basically the measure of a crypto miner's performance considered crucial for the network's security.
The company backed its decision as a way to safeguard the crypto assets stored by Chinese users on its servers. Even though China has restricted trading of cryptocurrencies, the country has allowed crypto owners to hold on to digital assets for now.
In the coming days, Sparkpool will be reaching out to its Chinese users with information on the clearing and refunding rules.
Until recently, China was home to the world's largest number of Bitcoin miners. However, the government has been cracking down on it over the last couple of years, and now particularly seems to be focusing on the environmental impact of cryptocurrency.
The massive energy consumption required by mass-level crypto trading and its effects on greenhouse gas emissions has been concern-worthy for many nations 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 witnessing expansion and adoption.
Earlier in September, central American country El Salvador became the first in the world to legalise Bitcoin as a legal payment option.
Cryptocurrency is an unregulated digital currency, not a legal tender and subject to market risks. The information provided in the article is not intended to be and does not constitute financial advice, trading advice or any other advice or recommendation of any sort offered or endorsed by NDTV. NDTV shall not be responsible for any loss arising from any investment based on any perceived recommendation, forecast or any other information contained in the article.
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