Binance, Houbi cease operations in China after crypto ban

Highlights 

  • Binance as well as Houbi have cut back on China operations as Beijing stiffens its suppression of cryptocurrencies.
  • Chinese central bank, the People’s Bank of China, announced on Friday that all crypto transactions would now be considered illegal.
  • New sign-ups will no longer be an option for Mainland China users; however, they are available for Hong Kong users on both these platforms.

As per the latest news, Binance and Houbi, the two largest Bitcoin exchanges across the world, are ceasing their operations in China, owing to the Beijing government's crackdown on cryptocurrencies.

Related Read: Why is China’s Hebei province planning to suppress crypto mining?

China bans cryptocurrency

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Both the above-mentioned crypto exchanges have stopped new registrations for Chinese users and have put a halt to let traders use mobile numbers from Mainland China.

Further, Huobi has declared its plans to close the current Mainland China user accounts towards December end.

However, new account requests are still available for Hong Kong users on both these crypto platforms.  

A leading crypto exchange, OKEx, continues to operate

As of now, OKEx, a crypto trading major continues to operate in the country. As of Sunday morning, its users can still use the numbers of Mainland China to register on the exchange in Hong Kong.

Chinese central bank announces crypto trading as illegal

The move followed the announcement that all crypto-related transactions last Friday were deemed an illicit financial activity by the People’s Bank of China and other institutions like the public security ministry, supreme court, etc.

Friday's announcement by the Chinese central bank reflects that the country is focusing on shutting down all forms of cryptocurrency trading within its shores.

Do Read: What the Chinese cryptocurrency ban means for crypto investors

Those found involved in these unlawful financial activities would be committing a crime and will be prosecuted.

Moreover, foreign websites which are offering online crypto trading services to Chinese nationals, are also illegal.

Related article: Cryptocurrency Regulations: The good and the bad effects

Bottom Line

The blanket ban by the Beijing government on cryptos is a final blow to the trading of digital currencies across China.

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