In response to the People's Bank of China flagging all cryptocurrency-related activities as illegal, the world's largest bitcoin exchanges Huobi and Binance are forced to stop creating new accounts and activities in mainland China.
The two crypto currency exchange operators will no longer accept mainland China mobile phone numbers to register new accounts. In addition, Huobi also announced that it will close existing accounts before the end of the year.
Huobi exchange announced its intention in a public statement:
“In order to comply with local laws and regulations, Huobi Global has stopped registering accounts for new users in mainland China. Huobi Global will phase out its existing user accounts in mainland China by the end of December and ensure the safety of user assets. "
At the same time, a Binance spokesman said that the company has ceased operations related to the exchange in China, blocking the Chinese IP, stating that the company is fully compliant with local regulatory requirements.
Despite the ban on registrations for mobile phone numbers from China, the two exchange operators still accept new registrations from Hong Kong. Binance , OKEx , and Huobi are among the three largest cryptocurrency exchanges in the world. I wonder if Huobi and two other major players in the market will follow suit to stop all operations in China before the end of this year.
China's firm stance on cryptocurrency
The People's Bank of China recently issued a "Notice for Further Prevention and Management of Risks Associated with Virtual Currency Trading", banning all cryptocurrency-related transactions. Virtual currency derivatives are considered illegal. This move is a "bullet point" in China's tough stance on cryptocurrencies.
In 2017, China blocked local exchanges, forcing them to move their bases to crypto-friendly countries Singapore and Malta for large transactions. Then, in June, after China's Cabinet resumed its crackdown on cryptocurrency trading and mining, Huobi stopped allowing Chinese users to trade risky products.
Even the ban on cryptocurrency mining in July left hopes for traders and miners to find loopholes to continue their activities. But in a recent notification from the People's Bank of China, all cryptocurrency-related activities were clearly marked as illegal, which drew all hopes to near zero.
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