The China based largest Ether mining company suspends its operations. SparkPool which owns more than 22% of Ether mining in China has decided to stop its operations. SparkPool is second only to Ethermine when it comes to extracting Ethereum.
SparkPool is the latest victim of Chinese crackdown. The world’s second-largest Ethereum mining organization has decided to shut down its operations in China. As of this writing, the business organizations have only restricted the access of its operations to the new users in China. Company’s official statement has said that this being taken as company is trying to adopt the new crypto environment within the country.
The company officials have also said that company will totally shutdown its operations not just in China, but also outside China. The company said that these measures were necessary to ensure the customer safety under the regulatory policy requirements. Moreover, the company’s officials have also criticized the negative approach adopted by the Chinese government towards the crypto market.
Chinese government on last Friday declared all sort of crypto related activities as illegal. SparkPool is not the only crypto related business company which has suspended its operations. Following the news two of the world’s biggest crypto exchnages Binance and Huobi have also suspended offering new accounts to the users from mainland China.
The company officials have said that they will share the detailed point of view via emails and newsletter. The company refused to give any immediate detailed response to the acts committed the Chinese regulatory authorities. Company also hinted that their legal team would talk about the matter with the Chinese authorities and willing to ensure that all legal requirements will be fulfilled.
Despite the fact that SparkPool has closed its worldwide mining operations. However, Ethereum blockchain is switching its business operations form proof-of-work consensus mechanism to a proof-of-stake model in 2022. This is the part of the company’s long term business policy in order to stay competitive in the market. This long-planned upgrade is also known as Ethereum 2.0.
Ethereum has already informed all the Ether miners once the upgrade plan is launched the mining will become obsolete. Hence, Ether miners will not have any other option left than to upgrade or stop mining. However, the upgrade is different thing. Crypto experts have labelled the current policy of Chinese government extremely cruel and harsh towards the crypto market. Some of the world’s renowned crypto exchnages have already said that they are ready to sit the with government’s officials to discuss the legal concerns and how to address them. But as of this writing, the response from the regulatory authorities and government officials is nothing but harsh.