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China and taiwan Crypto Ban: Crypto Trade Huobi To Retire User Accounts

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Top Crypto Swap Huobi Global has said it can suspend all China-based user accounts later this year. The exchange said in an announcement on Weekend that it has discontinued accounts registration for new users in Mainland China. This event comes after China’ s central bank intensifies its crackdown on crypto activities.

Last week, China intensified a crackdown on cryptocurrencies. The country’s strongest regulators, including the central bank, financial, securities, and forex regulators, said they will work together to root out all crypto-related transactions that are considered to be illegal financial activity. The People’s Bank of China also recently issued a notice stating that it is illegal for foreign exchanges to supply services to users in mainland China.

Exchanges Shutting Down Services In China

In its announcement, the exchange said “ Huobi World wide will gradually retire existing Mainland China user accounts by 24: 00 (UTC+8) on Dec 31, 2021, and ensure the safety of users’ assets. We will inform users of the precise arrangements and details through official announcements, e-mails, text messages, etc . ”

In May, Huobi has suspended its bitcoin mining service and sales of mining equipment in mainland China. In June, the exchange had to stop offering derivatives trading services to users in China. These were also due to China’s long-running crackdown on cryptocurrencies.

Related Reading | Huobi Bans Chinese Residents From Derivatives Trading As China’ s Crypto Crackdown Continues

Huobi is one of the first major crypto exchanges that has reacted to China’ s latest crackdown order. This order states that it will now consider all crypto-related transactions to be illegal. This includes services that let Chinese users exchange fiat currencies for crypto assets.

China’s largest cryptocurrency exchange, Binance, has also taken a similar part of response to the Chinese government regulations. It has restricted new users from mainland China from registering with Chinese mobile phone numbers. New sign-ups are still available for Hong Kong users on Huobi and Binance, but mainland China is no longer a choice for new account creation.

Total crypto market cap from TradingView.com

  Total crypto market cap at $1. 96 Trillion | Source: Crypto Total Market Cap from TradingView. com  

According to local news , a Huobi spokesperson refused to comment. However , there was a comment from a Binance spokesperson. They said the company does not have exchange operations in China and blocks Chinese IPs, without commenting on the mobile registration move.

“Binance got its compliance obligations very seriously and is committed to following local regulator requirements wherever we operate, ” the spokesperson said in an email.

China’ s Crypto Ban

China is one of the world’ s largest cryptocurrency markets. However , the Chinese government has not been receptive to the concept of crypto for decades now. It has once more reiterated its stance on cryptocurrency trading activities. The central bank said virtual tokens such as bitcoin and ether are not legal tender. Cryptocurrencies “should not, and are not capable of being circulated on the market and used like currencies, ” it said.

Related Reading | China Calls All Crypto Transactions Illegal, Bitcoin Drops $4k In Response

Trading cryptocurrency has officially been banned in China since 2019 but has continued online through foreign exchanges. However , there has been a significant crackdown this year.

  Featured image from Business Insider, Chart from TradingView. com