Uncertainties raised by China’s blanket ban on cryptocurrency trading have caused a downturn as local crypto exchanges such as Huobi take proactive measures to protect and return existing investments residing in the mainland.
Speaking to Cointelegraph on the matter, Huobi Group co-founder Du Jun said that the crypto exchange wants to ensure the safety of users’ assets as part of its social responsibility:
“Customers will be able to transfer their assets to other exchanges or wallets over the next few months. Specific procedures and operating rules will be defined in future announcements.”
Citing the possibility of a communication gap with Chinese investors amid the ban, the crypto exchange is also working on other ways to protect client assets so that users can transfer them to external exchanges or wallets.
Chinese investors accounted for more than 30% in terms of trading volumes before the crypto ban, but as John points out, Huobi has seen increased adoption in Southeast Asian and European markets. However, the exchange expects that “any short-term impact on Huobi’s revenue will be mitigated as our global business continues to grow.”
While monitoring the ban on cryptocurrency trading and mining as imposed by the People’s Bank of China and other Chinese regulatory authorities, Jun plans to redouble Huobi’s compliance efforts and continue building compliant operations on a global scale.
Crypto exchanges in mainland China, including Huobi, began stopping new customer registrations shortly after a new cryptocurrency ban took effect on September 24. Huobi later announced that all mainland Chinese accounts will be closed by 24:00 UTC +8 in December. .31, 2021.
Related: Crypto has recovered from Chinese FUD more than a dozen times in the last 12 years
Historically, China has been responsible for the lion’s share of Bitcoin (BTC) mining. With no support from the ruling government, Chinese miners have continued to move offshore in crypto-friendly jurisdictions.
According to a recent Cointelegraph report, the latest ban marks the nineteenth attempt by Chinese regulators to clamp down on bitcoin and cryptocurrencies in the past 12 years. Although the decision to ban cryptocurrency trading in China caused a few unwary investors to panic when selling, the bitcoin price continues to show bullish signs due to proactive support from cryptocurrency exchanges and users around the world.