Binance and Huobi Halt New User Registrations From China

Bitcoin exchanges Binance and Huobi have stopped registering new users in mainland China after a new wave of crackdown on cryptocurrencies by the country’s government, reports Bloomberg.

Companies have banned customers from using Chinese phone numbers to register new accounts. Hong Kong residents can still create wallets on both platforms, according to the agency.

In a conversation with Bloomberg, a Binance spokesman noted that the company does not conduct operations in China and is blocking the corresponding IP addresses. He did not comment on the ban on the use of local phone numbers.

“Binance takes its compliance obligations extremely seriously and is committed to following local regulations wherever we operate,” he said.

Update:

Huobi published a notice that terminated registrations for users from mainland China on September 24, 2021. The reason was the company’s desire to comply with local laws. By December 31, the platform will delete the existing accounts of the PRC residents.

Information to Bloomberg was confirmed by the Chinese journalist Colin Wu. He noted that the actions of these major players demonstrate how much pressure cryptocurrency companies have faced in the country.

Wu also drew attention to the messages of the Whale Alert bot, according to which more than 22,000 BTC (~ $ 928 million at the exchange rate at the time of writing) were transferred from Huobi addresses. He stressed that if the exchange is trying to cope with the avalanche of withdrawal requests, it must be transfers from cold wallets to hot ones.

On September 24, it became known about the next repression of China in relation to the cryptocurrency industry. The State Committee for Development and Reforms of the PRC pointed to the negative impact of mining on the environment and its “insignificant” contribution to the country’s economy.

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The People’s Bank of China (PBOC) described the illegal activities of platforms that exchange digital assets between themselves or for fiat. Prior to that, Wen Xinxiang, Director of the NBK Payment and Settlement Department, named cryptocurrencies and stablecoins a threat to the traditional financial system.

Recall the head of the Circle Jeremy Allair urged other countries not to be like China regarding the regulation of cryptocurrencies.

A similar point of view was expressed by US Senator Pat Toomey. He said that Beijing’s actions open up to the United States new opportunities in the digital asset industry.

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