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The two largest cryptocurrency exchanges stated that they have stopped registering new users from mainland China due to the ban.
After Beijing completely banned all crypto trading and mining last week, cryptocurrency exchanges and crypto service providers are scrambling to cut off business ties with customers in mainland China.
As a result of years of efforts to curb the industry, 10 powerful Chinese government agencies, including the central bank, stated that overseas exchanges were prohibited from providing services to mainland investors through the Internet—previously a gray area—and pledged to work together to eradicate them. “illegal trading”. ”Cryptocurrency activity.
Henri Arslanian, head and partner of cryptocurrency at PricewaterhouseCoopers (PwC), said on Twitter: “Although this is not surprising, because China has repeatedly’banned’ cryptocurrencies in the past, but this time there is no ambiguity.” “China prohibits all. Types of encrypted transactions and encrypted services. There is no room for discussion. There is no gray area.”
Huobi Global and Binance, the two largest exchanges in the world, are popular among Chinese users and have suspended the registration of new accounts for mainland customers. Huobi also stated that it will clean up the existing ones before the end of the year.
“On the day we saw the notice, we began to take corrective measures,” Huobi Group co-founder Du Jun said in a statement to Reuters.
Du did not estimate how many users would be affected, only that Huobi, which was once the world’s largest cryptocurrency exchange, started a global expansion strategy years ago and has grown steadily in Southeast Asia and Europe.
Bitcoin fell 8.9% on Friday to about $40,700, but recovered over the weekend. As of 8:10 a.m. on Monday, it was trading at more than US$43,000 in Hong Kong.
The share price of crypto-related companies plummeted on Monday. Huobi Technology, a crypto asset management company and trading company, plummeted 23%, and OKG Technology Holdings Ltd, a fintech company in which the founder of cryptocurrency exchange OKcoin Xu Mingxing holds majority shares, fell 12%.
The popular crypto wallet service provider TokenPocket also stated in a notice to customers that it will terminate the provision of services to mainland Chinese customers who are at risk of violating China’s policies and will “actively accept” supervision. It added that it welcomes China’s cooperation in blockchain technology.
After China, which was once the world’s largest bitcoin trading and mining center, prohibited such platforms from converting fiat currencies into cryptocurrencies, and vice versa, many Chinese cryptocurrency exchanges closed in 2017 or moved overseas. Then in May of this year, the State Council of China pledged to ban bitcoin trading and mining.
Flex Yang, the founder and CEO of Babel Finance, said that other types of Chinese crypto companies have been moving out of China in the past few months during the crackdown, adding that the impact of the latest policy will be “limited.”
The Chinese crypto financial service provider opened a new business headquarters in Singapore this month.
The crypto asset management and custody platform Cobo also recently moved its headquarters from Beijing to Singapore.
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