Recent developments in China’s crypto ban revealed that more than 20 crypto companies withdrew from the Chinese market on October 7th after ceasing services to Chinese users, according to local sources that China journalist Colin Wu pointed to Twitter quotes.
More than 20 crypto companies are withdrawing from the Chinese market
When the People’s Bank of China (PBoC) updated its cryptocurrency ban policy late last month, many crypto companies began shutting down operations to avoid confrontation with regulation. The latest guidelines extend to even the smallest aspect of cryptocurrency, breaking it out of the core.
According to the China Securities Journal, “more than 20” crypto-related companies have “announced their withdrawal from the Chinese market” in the past few days.
The Chinese central bank’s guidelines to completely ban the “illegal” and “highly speculative” crypto market revolve around banning three key crypto activities, including mining, cryptocurrencies, trading in cryptocurrencies, and providing foreign cryptocurrency exchange services to Chinese customers.
More than 20 crypto companies are pulling out of the Chinese market while Huobi is done and ready to go
Chinese crypto companies are massively leaving the country after finally beating the regulatory storm. Many have tried in the past few years to rename themselves in mainland China as providers of education providers and companies affiliated with “blockchain”. But it looks like the pressure of the nation’s recent crypto crackdown may have finally affected big names like Huobi and Poloniex.
According to the announcement by the Central Bank of China, crypto exchange giant Huobi has announced the suspension of new account openings as well as the suspension of new account registrations for Chinese users in place of the existing ones. Huobi announced at midnight on December 31, 2021, the closure of self-existing accounts of mainland users.
In the case of Poloniex, an exchange run by Tron (TRX) supremo Justin Sun, the picture is a bit confusing. Journalist Colin Wu took to Twitter to post a screenshot of what appears to be an email from the Poloniex support team. The email states that “Mainland China has become a restricted jurisdiction and adds:
“We are sorry to inform you that Poloniex will no longer be able to provide services to users in mainland China.”
However, Wu later also posted a picture of an alleged email with Poloniex saying a “system failure” resulted in the email being sent, added a “sincere apology,” and informed the account owner that “you Money is safe ”.
Since then, companies have shut down in mainland China, with BiKi, BitZ, and BHEX being some of the exchanges that have announced they will no longer accept adjustments from China – and in some cases will even close completely.
Mining company NB Miner made a similar decision, and last month the Ethereum (ETH) Spark Pool mining pool announced that it would cease all operations.
The media noted that enforcement is also increasing as authorities in Inner Mongolia, once a haven for Bitcoin (BTC) miners, “recently seized 10,100 mining rigs of cryptocurrency and closed 45 crypto-mining projects.”
And it looks like crypto users in China may be affected by the blackout. The media company noted that “market data sites” that provide information about the crypto market – such as CoinGecko and CoinMarketCap – also began blocking IP addresses from mainland China late last month “to actively address the regulatory policy requirements of the Chinese government fulfill”.
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