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Ether falls as Sparkpool shuts after China clampdown

By Neil Dennis

10:10, 28 September 2021

Ether coin and mining circuitry
Ether mining operation closes - Photo: Shutterstock

Ethereum was the biggest faller among the top 10 cryptocurrencies on Tuesday following an announcement by Sparkpool, the world's second-largest ether miner, that it was suspending its operations after a Chinese crackdown on cypto activities.

Ether, the second-biggest cryptocurrency by market capitalisation, fell 5.4% to $2,925, while top-rated bitcoin fell $3.5% to $42,026.

On Friday, Sparkpool said it had stopped providing services to new users from mainland China following an announcement on the People's Bank of China (PBoC) website that said all crypto-related activities are illegal.

Clampdown intensifies

China has intensified its restrictions on cryptocurrencies in recent months, with bans on activities such as mining and trading. The PBoC also banned the country's banks and payment services firms such as Alibaba from providing crypto transaction services.

DOGE/USD

0.16 Price
-1.700% 1D Chg, %
Long position overnight fee -0.0753%
Short position overnight fee 0.0069%
Overnight fee time 21:00 (UTC)
Spread 0.0012872

ETH/USD

3,781.29 Price
+0.770% 1D Chg, %
Long position overnight fee -0.0616%
Short position overnight fee 0.0137%
Overnight fee time 21:00 (UTC)
Spread 6.00

BTC/USD

68,509.30 Price
+1.610% 1D Chg, %
Long position overnight fee -0.0616%
Short position overnight fee 0.0137%
Overnight fee time 21:00 (UTC)
Spread 106.00

XRP/USD

0.53 Price
-0.200% 1D Chg, %
Long position overnight fee -0.0753%
Short position overnight fee 0.0069%
Overnight fee time 21:00 (UTC)
Spread 0.01168

On Tuesday morning, Sparkpool's website prominently displayed this message:

What is your sentiment on ETH/USD?

3781.29
Bullish
or
Bearish
Vote to see Traders sentiment!
A complete shutdown for all SparkPool services and operations for the existing users, at home or abroad, has been planned for September 30, 2021 at 20:00 under the premise of ensuring the safety of our users’ assets. Please plan accordingly. Further details about the shutdown will be sent out through announcements, emails, and in-site messages. Thank you for your understanding, and we are extremely grateful to all our users for their long-term support to SparkPool.

Mongolian mining rigs seized

Under Friday's intensified crackdown on the industry, China's Xinhua state news agency reported on Tuesday that the Chinese authorities had seized more than 10,000 crypto-mining rigs from a mining operation run from a retail park warehouse in Inner Mongolia.

The report concluded that Inner Mongolian authorities have, so far this year, shut down 45 cryptocurrency mining projects, saving 6.58 billion kilowatt-hours of electricity - equivalent, it says, to two million tonnes of coal.

Read more: Alibaba to stop selling crypto mining rigs

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