Prominent Exchanges on Final Steps to Complete Close China’s Cryptocurrency Channels

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Key takeaways:

  • Major exchanges, including Binance, Huobi, and MEXC, said this week that they will close China’s fiat/ cryptocurrency channels on December31, as planned.
  • Market changes should be taken into account.
Complete Close China'S Cryptocurrency Channels
Complete Close China’s Cryptocurrency Channels

Huobi and Binance, the world’s two largest Bitcoin exchanges, have put a halt to operations in China as Beijing tightens its grip on cryptocurrencies. Both exchanges have banned new registrations for Chinese consumers, and one of them plans to terminate current accounts in order to comply with the country’s new cryptocurrency ban.

Huobi Global, which was created in 2013 and has offices in Singapore, South Korea, the United States, and other countries, said over the weekend that it would no longer accept new customers from mainland China. To safeguard the safety of its customers’ funds, the exchange will gradually terminate existing accounts in China by the end of 2021.

Both exchanges have barred traders from using cell phone numbers from mainland China. Hong Kong customers can still sign up for new accounts on both exchanges, but mainland China is no longer a possibility for new registrations. Huobi has also stated that existing accounts will be closed at the end of the year.

Without commenting on the mobile registration action, a Binance spokeswoman stated the business does not conduct exchange activities in China and restricts Chinese IPs.

In an email, a spokesman for Binance said, “Binance takes its compliance obligations extremely seriously and is dedicated to fulfilling local regulator standards wherever we operate.”

After years of attempting to suppress the emergence of Bitcoin and other digital currencies, China’s latest crackdown is the ultimate blow. The warning issued on Friday explicitly targeted offshore exchanges that cater to Chinese customers, prohibiting them from hiring locals for positions ranging from marketing to payment settlement and technology.

In 2017, China ordered local exchanges to stop hosting trades between fiat money and crypto tokens, pushing Huobi and Binance to establish trading platforms in more friendly jurisdictions like Singapore and Malta. Chinese consumers can still use their services, such as over-the-counter trading and crypto-to-crypto transfers.

After China’s cabinet called for a further crackdown on crypto trading and mining, Huobi prohibited existing Chinese users from trading riskier items like derivatives in June. There is no evidence that Chinese consumers will be denied access to Huobi and Binance, which are widely recognized as two of the main three crypto exchanges that started in China.

Bitmain, a Chinese cryptocurrency mining equipment manufacturer, will expand its operations outside of China following the country’s crypto prohibition. Bitmain will cease delivery to mainland China locations to conform with local legislation, while overseas business will continue as usual, according to the company.

“Antminer will stop shipping to mainland China on October 11, 2021. Customers in mainland China who have purchased long-term products will be contacted by our staff to discuss alternate options.”

Huobi has announced that people who do not withdraw cryptocurrencies would be paid management fees in order to completely eliminate Chinese clients.

The Chinese Yuan will no longer be used as a FIAT currency by Binance. Furthermore, Binance’s services will no longer be available to Chinese traders. Bitman said earlier in October that it will no longer be supplying Bitcoin mining equipment to China. With this shift, Chinese users’ already limited options would become much more limited.

Chetna Prakash
Chetna Prakash

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