Major crypto exchanges are severing ties with users in China after the Chinese government’s recent announcement of a cryptocurrency campaign. Huobi has stopped allowing new users in China to sign up for its services while Binance has banned account registrations using Chinese mobile phone numbers.
Major cryptocurrency exchanges stop registering Chinese users
After the recent announcement of the crackdown in China, several cryptocurrency exchanges and service providers said they had begun to cut ties with users in China.
Crypto exchange Huobi announced Sunday that it will “gradually withdraw existing users in mainland China.” Exchange books:
To comply with local laws and regulations, Huobi Global has suspended account registration for new users in mainland China, effective September 24, 2021 (UTC+8). Huobi Global will gradually retire existing user accounts in China by 24:00 (UTC+8) on December 31, 2021.
“On the same day we saw the notice, we began taking corrective action,” Du Jun, co-founder of Hubei Group, told Reuters.
Meanwhile, Binance said that it has banned account registrations using Chinese mobile numbers and its app is also no longer available for download in China. A spokesperson for the stock exchange said:
Binance takes its compliance obligations very seriously and is committed to following the requirements of the local regulator wherever we operate.
Binance has been scrutinized by a long list of regulators across the globe, including the US, UK, Netherlands, South Africa, Hong Kong, Singapore, Malaysia, Thailand, Lithuania, Italy and Canada. On Monday, the exchange ended some services in Singapore.
Tokenpocket, a crypto wallet provider, said in a notice to customers that it will terminate services for users in mainland China in order to comply with Chinese regulations.
Some people see the Chinese government’s crackdown on cryptocurrency as positive news that has little impact on the crypto industry. Galaxy Digital CEO Mike Novogratz recently explained that China has “less and less” influence on the cryptocurrency market. Meanwhile, many US lawmakers see the Chinese campaign as a great opportunity for the US to lead the crypto space.
What do you think of cryptocurrency exchanges severing ties with users in China? Let us know in the comments section below.
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