Crypto exchanges Binance and Huobi scramble to sever ties with Chinese users after the government ban. Here’s how the crypto trading world is reacting to Beijing’s crackdown. | Currency News | Financial and business news
- Crypto exchanges Binance and Huobi have stopped new user registrations in China.
- Binance’s domain was already blocked in China in 2017, but it confirmed that cellphone registrations will now also be banned.
- Sam-Bankman Fried said FTX had moved its headquarters from Hong Kong to the Bahamas.
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Major cryptocurrency exchanges cut ties with investors in mainland China after the country declared all crypto-related transactions illegal.
Friday’s announcement also prevents foreign crypto exchanges from providing services to local residents.
In response to the ban, Binance said it no longer accepts registrations from Chinese mobile numbers. The exchange has been on lockdown in China since 2017, when the country ordered local crypto exchanges to cease operations, and local users have not been able to access its domain since then.
“As such, Binance does not currently conduct any foreign exchange transactions in China,” a Binance spokesperson told Insider. “We can also confirm that Chinese cell phone recordings are blocked and the Binance app is not available in China for download.”
“Binance takes its compliance obligations very seriously and is committed to following the requirements of local regulators wherever we operate,” they added.
Chinese crypto exchange Huobi said on Sunday it would stop new user registrations by mainland customers and retire existing ones by the end of 2021. Huobi co-founder Du Jun told Reuters that the exchange took corrective action the same day China cracked down on digital. asset transactions.
TokenPocket, a provider of widely used crypto wallet services in China, said in a notice Friday that it will “actively adopt” the relevant regulatory provisions and terminate these services for mainland users who do not comply with the new laws. .
China has been hostile to cryptocurrencies for some time now, so its latest announcement did not shock many investors or crypto companies. This is clear from the recent price movement in the crypto market, which has not reacted as much compared to previous crackdowns.
Kraken CEO Jesse Powell told Bloomberg on Friday that the exchange does not have a large footprint in China and that the latest ban would not have much of an impact on its business.
“This is not a market that we have targeted and for what it’s worth; this is about the 15th time China has ‘banned bitcoin’, and they have become extremely efficient,” Powell said. .
Crypto exchanges could be moved to other more digital asset-friendly locations in Asia Pacific or the Bahamas, Fundstrat strategist Armando Aguilar told MarketWatch. Coinbase has no business in China, according to its website.
FTX CEO Sam Bankman-Fried announced Friday the exchange had moved its headquarters from Hong Kong to the Bahamas, where it only established a subsidiary last week.
“Countries that take such inflexible positions are taking significant generational risks to their economies,” said John Wu, president of blockchain startup Ava Labs. “They may find a way to embrace these networks or be excluded from the financial infrastructure of the future.”
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