Huobi and Binance Suspends New User Registrations from China

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

Last week, the People's Bank of China published new clarifications regarding restrictions on cryptocurrency transactions. In the report, which was circulated on Friday, it was stated that all activities related to cryptocurrencies were illegal and it was emphasized that foreign crypto exchanges should be prevented from serving Chinese citizens.

In the report, it was also emphasized that control would be increased in order to prevent the risks arising from cryptocurrencies. With the increasing pressure on crypto assets in mainland China, important news continues to come from the region.

Huobi suspends accounts of Chinese users

Cryptocurrency exchange Huobi, which has a very large user base in China, announced on its official site that it will suspend the accounts of its users in mainland China until December 31:

Huobi Global has stopped account registration for new users in mainland China from September 24, 2021 to comply with local laws and regulations. Huobi Global will gradually phase out existing Chinese user accounts and ensure the security of users' assets by 24:00 on December 31, 2021. Huobi Global has always been committed to providing digital asset trading services and ensuring the security of client assets while following all applicable laws.”
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After this announcement, cryptocurrencies fell rapidly and a very high amount of futures positions became liquid. While Bitcoin fell to $40,700 during the downtrend, many altcoins lost more than 10% in value.

Moreover, Binance, the world's highest-volume cryptocurrency exchange, has also banned customers from using Chinese phone numbers to register new accounts. Hong Kong residents, however, can still create wallets on both platforms, according to Bloomberg.

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.

According to the shares of Chinese journalist Colin Wu,  Chinese users began to flock to DeFi platforms after the news of the restriction. According to Wu, the number of Metamask passbooks opened from China has seen a huge increase recently.

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