SparkPool, the second-largest Ethereum (ETH) mining pool today, has announced its intentions to suspend all services this September 30 to purportedly be maximally compliant with the stringent regulatory requirements imposed by the Chinese government. This development co-aligns with China’s ensuing crackdown against cryptocurrencies, wherein it declared that all crypto-based activities are deemed illegal.
Diving deeper into SparkPool’s closing announcement, the mining pool intends to ensure total user asset safety despite the Chinese government crackdown. It then notes that further details to how their users could do just that would promptly be sent through emails, in-site messages, and announcements.
Considering SparkPool’s current stature as the second-largest ETH miner – only behind Ethermine, its exit from the industry would surely be felt by the entire crypto space. As per the latest data report of PoolWatch, the China-based mining pool contributes over 142 terahashes per second (TH/s), which is about 22% of the entire network’s current hashrate total.
SparkPool’s imminent shutdown comes amidst the Ethereum network’s ongoing switch from its original proof-of-work consensus framework to a proof-of-stake model this coming 2022 as part of its long-awaited jump to Ethereum 2.0.