Cryptocurrency exchanges are starting to cut Chinese users

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The cryptocurrency exchange has begun cutting off contact with customers in China after Beijing announced a series of “illegal” digital transactions last week, in its most recent form against financial institutions.

Huobi, one of the world’s largest crypto exchanges, has announced that it will remove Chinese users by the end of the year, while Binance, another major platform, will no longer accept Chinese subscriptions and phone numbers.

China has long been an important market for the economy and development of crypto as well as world-renowned sites bitcoin mines, an accounting system that creates new segments of digital currency.

But Chinese authorities have begun to undermine the crypto market in recent months, push other aspects of the export industry, such as regulators have increased pressure in various sectors including technology, education, sports and real estate.

A recent ban, announced Friday by the People’s Bank of China and nine other organizations including internet regulators and police, has been put in place. it is forbidden to exchange providing services to Chinese users.

The statement, which warns of “legal threats to individuals and organizations” involved in the financial sector, appears to be cracking down on foreign investors and their employers, shutting down opportunities after China’s central bank banned foreign financial institutions from supporting crypto activities. in May.

Huobi said it had already stopped signing Chinese users and was “slowly retiring from the Mainland China account” by the end of the year. The TokenPocket digital wallet, widely used in China, has said it will “immediately adopt” the latest rules and stop supporting other activities in the country.

FTX – that was It costs $ 18bn after making money in July – meanwhile it has announced it will relocate its headquarters to the Bahamas amid growing laws.

Its founder, 29 years old Sam Bankman-Level he wrote on Twitter over the weekend that the Bahamas “is one of the few places to set up the entire crypto system”.

A recent legal explosion sent the price of Bitcoin down by 8% to $ 41,000, but it had recovered Monday afternoon.

“The law focuses on exchanges – it’s legal for Chinese to work,” said Leo Weese, co-founder of the Hong Kong Bitcoin Association. “If people know better it is possible to buy and sell.”

The culture of crypto trading in China can also protect them from extinction stamp completely. Trading platforms and peer exchanges allow Chinese users to exchange renminbi due to a number of factors that make it difficult for regulators to adapt to maritime events and crypto maritime events.

“While crypto-currency exchanges may not help Chinese citizens, the reality is that a complete ban on Bitcoin in any country is impossible,” said Henri Arslanian, a partner who oversees crypto at PwC.

Despite Beijing’s efforts, Chinese women who exchanged their stocks sold $ 150m of digital currency in the first six months of the year, making it the world’s second largest market in the US, according to analytics analyst Chainalysis.

Zhang Danning, who owns more than Rmb100,000 ($ 15,500) in Huobi’s account, said he did not worry: “I want to have more money… And I have never considered changing my electricity bills back to renminbi.”

He also said he plans to transfer his cryptocurrency to the bitcoin wallet if Huobi closes his account.

Beijing has been successful in forcing miners to relocate out of the country government officials have issued several bans on electricity service this year.

Additional reports of Xueqiao Wang in Shanghai

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