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SparkPool shuts as China bans crypto currencies

written by Bella Palmer
crypto-currencies

SparkPool’s decision came in response to a decision by the PBOC last week to effectively ban cryptocurrency

One of the world’s largest Ethereum mining pools is closing down amid China’s move to ban cryptocurrencies within its borders.

According to Cointelegraph, China-based SparkPool, the second biggest Ethereum mining pool in the world, announced Monday it was suspending access to new users in mainland China, with plans to suspend existing users in China and abroad on Thursday.

The move is to protect the safety of user assets in response to regulatory policy requirements, the company said, and further details about the shutdown will be sent out through announcements, emails, and in-site messages.

SparkPool did not immediately reply to request for comment, the Cointelegraph report said.

SparkPool’s decision came in response to a decision by the People’s Bank of China (PBOC) last week to effectively ban cryptocurrency.

The PBOC said the move was due to concerns about national security and the need to guard investors against risk. The bank cited illicit activities connected to cryptocurrency, such as gambling, pyramid schemes and money laundering, and specifically mentioned bitcoin, Ether and Tether.

The ruling also affects businesses outside of China, forbidding crypto services run by overseas exchanges to carry out digital transactions with people in China. The central bank has also said it will work with domestic agencies to undertake comprehensive monitoring.

Other companies are doing what SparkPool did. As reported on Sunday, two of the world’s biggest bitcoin exchanges have stopped taking users from China in the wake of the ban.

Both Huobi and Binance have stopped taking new registrations from Chinese users, while Huobi plans to close existing Chinese accounts by the year’s end to comply with the ban.

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