Major cryptocurrency exchanges have cut ties with users in China following the recent announcement of the Chinese government’s battle against cryptocurrencies. Huobi no longer allows new users in China to sign up for its service, while Binance has blocked account registrations with Chinese mobile numbers.
Crypto exchange Huobi announced on Sunday that it will “gradually retire existing mainland China users.” The Exchange wrote:
In order to comply with local laws and regulations, Huobi Global has suspended registration of new user accounts in mainland China effective September 24, 2021 (UTC+8). Huobi Global will gradually withdraw its existing user accounts in mainland China by December 31, 2021 at 12:00 (UTC+8).
Huobi Group co-founder Zhu Jun told Reuters, “On the very day we saw the notice, we started to take corrective measures.”
Binance, meanwhile, said it had blocked account registrations with Chinese mobile numbers, and the app was no longer available for download in China. A spokesman for the exchange said:
Binance takes its compliance obligations very seriously and is committed to following the requirements of local regulators wherever we operate.
Binance is overseen by a long list of regulators around the world, including the United States, United Kingdom, Netherlands, South Africa, Hong Kong, Singapore, Malaysia, Thailand, Lithuania, Italy, and Canada. On Monday, the Singapore stock exchange ended some services.
Tokenpocket, a crypto wallet provider, also said in a notice to customers that it would terminate customer service in mainland China to comply with Chinese regulations.
Some see the Chinese government’s cryptocurrency crackdown as positive news that has little impact on the crypto industry. Mike Novogratz, CEO of Galaxy Digital, recently stated that China has “less and less” influence over the crypto market. Meanwhile, some US lawmakers see China’s suppression as a great opportunity for the United States to take the lead in the cryptocurrency space.
What do you think about crypto exchanges disrupting and cutting ties with users in China? Let us know in the comments section below.