According to the announcement, the crypto exchange Huobi is gradually closing all user accounts in China, and Binance is also reacting to the new legal situation.
As expected, the ban that China has placed on the crypto market also affects the exchanges. Huobi Global, one of the most popular crypto exchanges in China, has announced that it will cease all user accounts based in mainland China later this year. Account registration has not been possible for new users from China since Friday. That divided the exchange in one Announcement from Sunday with. Huobi is reacting to the tightened measures taken by the People’s Bank of China (PBoC) to prevent crypto trading activities. Hong Kong will apparently not be affected by these measures for the time being.
Huobi Global will gradually terminate existing user accounts in mainland China by midnight (UTC + 8) on December 31, 2021 and ensure the security of the user accounts. We will inform users of the exact modalities and details through official announcements, emails, text messages, etc.
According to Huobi’s communication. In June, the exchange already banned its Chinese users from trading riskier products such as derivatives. At the time, the Chinese cabinet called for renewed action against crypto trading and mining.
Binance blocks cell phone registration from China
This makes Huobi one of the first major crypto exchanges to respond to the latest order from Beijing. The central government has decreed that all crypto transactions be treated as illegal. The possession of Krypo values as such remains permitted in theory, but from now on services that enable Chinese users to exchange fiat currencies for crypto assets are also prohibited.
It remains to be seen whether other large crypto exchanges will draw similar conclusions. With OKEx there is another large crypto exchange that represents many customers in China. As things stand today, it has not made any announcement about the blocking of user accounts in China. Apparently it is on Binance Registration with a Chinese mobile number is no longer possible. According to Bloomberg divided Binance– Spokesman that the company does not conduct any stock exchange transactions in China and blocks Chinese IPs. Nevertheless, he did not provide any information on the step of the blocked mobile registration.
In 2017, China instructed local exchanges to stop trading between fiat money and crypto tokens. Huobi and Binance then set up their tents in more crypto-friendly countries like Singapore and Malta. However, until recently, Chinese users were able to set up accounts there.