Crypto giants are facing severe pressure in mainland China
Cryptocurrency exchange Huobi just announced that it will “gradually retire” all of its existing Chinese users by the end of the year in order to comply with local regulations:
Huobi Global will gradually retire existing user accounts in mainland China by 24:00 (UTC+8) on December 31, 2021, and ensure the safety of users’ assets. We will inform users of the specific arrangements and details through official announcements, emails, text messages, etc.
Meanwhile, rival platform Binance is no longer allowing new users from China to register on the exchange, 8BTCnews reports.
On September 25, Huobi also scrambled to prevent Chinese residents from creating new accounts on its platform.
Chinese crypto blogger Colin Wu noted that exchanges are currently facing “more pressure” in light of the intensified crackdown.
As reported by U.Today, the People’s Bank of China recently issued a notice saying that it is illegal for foreign exchanges to provide services to users in mainland China.
Both Binance and Huobi have their roots in China, but the two crypto giants had to move to other jurisdictions after the government imposed a ban on local cryptocurrency trading in 2017.
Chinese merchants can access foreign exchanges with the help of VPN services.
Plunge rope in China
China’s intensified crackdown on the crypto industry has put significant selling pressure on Tether (USDT), the world’s largest stablecoin.
On September 25, trading began at a discount of approximately 10% against the yuan on the Huobi Over-the-Counter (OTC) market.
#usdt It is inundated with a 10% discount on Hobby. pic.twitter.com/362Xay7QIe
– Red Lee (@redtheminer) September 26, 2021
