Binance will close OTC trading for mainland China customers
The largest digital currency exchange Binance announced the suspension of OTC trading in cryptocurrencies paired with the Chinese yuan and restricting access to it for clients from mainland China.
The move was the last opportunity for Binance to distance itself from its PRC customers after a wave of bans on digital currency trading and mining swept across the country. Representatives of the trading platform said that financial transactions including the Chinese yuan will be closed exactly at the end of 2021 December 31.
According to a recent press release from the company, its employees intend to conduct further thorough checks, identifying clients from the mainland of the country and restricting their access if they try to "cheat" the exchange. Subsequently, they will only be able to withdraw their assets, execute order cancellations, and also close positions and redeem them. In addition to this, tricky customers will receive a legal notice from Binance seven days before their account is restricted. Someone even called this process "user inventory", which is not far from the truth.
Binance is following in the footsteps of its rival Huobi, which has announced not only the suspension of over-the-counter trading in the Chinese national currency but also the extraction of customer accounts from mainland China, verified using the ID.
Binance fled China back in 2017 following a Beijing government decision regarding digital currency exchanges. However, his management retained OTC trading for Chinese clients until recently.
Earlier, more than 20 companies operating in the cryptocurrency industry announced the closure of their Chinese divisions or the transfer of headquarters. Against the backdrop of recently entered into force "crypto-repressions", some pools even decided to completely close.
One of these was the largest Ethereum pool called Sparkpool, and a little later BeePool joined it. Although, in general, experts agree that in the short term, this will not affect the Ethereum hash rate.
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