Crypto exchanges Huobi and Binance have stopped registering new users in mainland China after a new wave of cryptocurrency crackdowns by the country's government, Bloomberg reported.
China's fight against cryptocurrencies continues
Last week, the People's Bank of China released new clarifications regarding restrictions on cryptocurrency transactions. The report, released on Friday, stated that all cryptocurrency-related activities were illegal and stressed that foreign cryptocurrency exchanges should be prevented from serving Chinese citizens.
It was also pointed out in the report that scrutiny would be increased in order to prevent risks from cryptocurrencies. With the growing pressure on cryptocurrencies in mainland China, important news continues to arrive from the region.
Huobi suspends Chinese user accounts
Cryptocurrency exchange Huobi, which has a very large user base in China, announced on its official website that it will suspend its users' accounts in mainland China until December 31:
“Huobi Global has discontinued account registration for new users in mainland China since September 24, 2021 to comply with local laws and regulations. The company will phase out existing Chinese user accounts and ensure the security of user assets by 24:00 on December 31, 2021. Huobi Global has always been committed to providing digital asset trading services and ensuring the security of customer assets , following all applicable laws ".
After this announcement, cryptocurrencies fell rapidly and a very large amount of future positions went liquid. While Bitcoin fell to $ 40.700 during the downtrend, many altcoins lost more than 10% in value.
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Binance also chooses the same path
Additionally, Binance, the world's highest-volume cryptocurrency exchange, has also banned customers from using Chinese phone numbers to register new accounts. Hong Kong residents, however, can still create wallets on both platforms, according to Bloomberg.
In a conversation with Bloomberg, a Binance spokesperson noted that the company does not conduct operations in China and is blocking corresponding IP addresses. He did not comment on the ban on using local phone numbers.
"Binance takes its compliance obligations very seriously and is committed to following local regulations wherever we operate," he said.
According to the actions of Chinese reporter Colin Wu, Chinese users began to flock to DeFi platforms after the news of the restriction. According to Wu, the number of Metamask booklets opened by China has seen a huge increase recently.