Crypto exchange giants stop taking China users
Two of the world’s largest bitcoin exchanges have halted new registrations for Chinese users, taking one of the first actions to comply with Beijing’s latest cryptocurrency ban.
Exchange operators Huobi (火幣) and Binance (幣安) have stopped letting traders use mainland China mobile numbers to register new accounts, after the People’s Bank of China (PBOC) on Friday said that all crypto-related transactions would be considered illicit financial activity.
New sign-ups are still available for Hong Kong users on both platforms, but mainland China is no longer an option for new-account creation.
A Huobi spokesperson declined to comment, while a Binance spokesperson said the company does not have exchange operations in China and blocks Chinese IP addresses, without commenting on the mobile registration move.
“Binance takes its compliance obligations very seriously and is committed to following local regulator requirements wherever we operate,” the spokesperson said in an e-mail.
China’s latest pronouncement — issued by the central bank along with nine other government agencies including the public security ministry — is the culmination of years of attempted crackdowns on the rise of bitcoin and its peers.
Friday’s notice specifically called out offshore exchanges targeting Chinese users, banning them from hiring locally for roles from marketing to payment settlement and tech.
In 2017, China told local exchanges to stop hosting trades between fiat money and crypto tokens, forcing Huobi and Binance to set up shops in friendlier jurisdictions such as Singapore and Malta for their main trading platforms.
Still, Chinese users have been able to access their services including over-the-counter trading and crypto-to-crypto transactions.
In June, Huobi banned Chinese users from trading riskier products such as derivatives, after China’s Cabinet called for a renewed clampdown on crypto trading and mining.
There is no indication that Chinese users are barred from Huobi and Binance altogether, which are widely regarded as two of the big three crypto exchanges that originated in China, along with OKEx.
Users can still use mainland China numbers to register on OKEx as of yesterday morning in Hong Kong.
The PBOC’s announcement comes as countries around the world tighten the regulatory screw with the US threatening industry players with lawsuits or cease-and-desist orders. China’s stance comes as the Chinese Communist Party seeks bring key industries to heel from online gaming and tutoring to high-frequency trading.
“This is the latest and perhaps final stage of the Chinese government’s crackdown on crypto,” said Jehan Chu (朱沛宗), founder of investment firm Kenetic Capital in Hong Kong. “China has been consistent about its desire to rid itself of free trading in cryptocurrencies and emphasize more controlled projects.”
New sign-ups are still available for Hong Kong users on both platforms, but mainland China is no longer an option for new-account creation.
A Huobi spokesperson declined to comment, while a Binance spokesperson said the company does not have exchange operations in China and blocks Chinese IP addresses, without commenting on the mobile registration move.
“Binance takes its compliance obligations very seriously and is committed to following local regulator requirements wherever we operate,” the spokesperson said in an e-mail.
China’s latest pronouncement — issued by the central bank along with nine other government agencies including the public security ministry — is the culmination of years of attempted crackdowns on the rise of bitcoin and its peers.
Friday’s notice specifically called out offshore exchanges targeting Chinese users, banning them from hiring locally for roles from marketing to payment settlement and tech.
In 2017, China told local exchanges to stop hosting trades between fiat money and crypto tokens, forcing Huobi and Binance to set up shops in friendlier jurisdictions such as Singapore and Malta for their main trading platforms.
Still, Chinese users have been able to access their services including over-the-counter trading and crypto-to-crypto transactions.
In June, Huobi banned Chinese users from trading riskier products such as derivatives, after China’s Cabinet called for a renewed clampdown on crypto trading and mining.
There is no indication that Chinese users are barred from Huobi and Binance altogether, which are widely regarded as two of the big three crypto exchanges that originated in China, along with OKEx.
Users can still use mainland China numbers to register on OKEx as of yesterday morning in Hong Kong.
The PBOC’s announcement comes as countries around the world tighten the regulatory screw with the US threatening industry players with lawsuits or cease-and-desist orders. China’s stance comes as the Chinese Communist Party seeks bring key industries to heel from online gaming and tutoring to high-frequency trading.
“This is the latest and perhaps final stage of the Chinese government’s crackdown on crypto,” said Jehan Chu (朱沛宗), founder of investment firm Kenetic Capital in Hong Kong. “China has been consistent about its desire to rid itself of free trading in cryptocurrencies and emphasize more controlled projects.”
AI Disclaimer: An advanced artificial intelligence (AI) system generated the content of this page on its own. This innovative technology conducts extensive research from a variety of reliable sources, performs rigorous fact-checking and verification, cleans up and balances biased or manipulated content, and presents a minimal factual summary that is just enough yet essential for you to function as an informed and educated citizen. Please keep in mind, however, that this system is an evolving technology, and as a result, the article may contain accidental inaccuracies or errors. We urge you to help us improve our site by reporting any inaccuracies you find using the "Contact Us" link at the bottom of this page. Your helpful feedback helps us improve our system and deliver more precise content. When you find an article of interest here, please look for the full and extensive coverage of this topic in traditional news sources, as they are written by professional journalists that we try to support, not replace. We appreciate your understanding and assistance.
