Major cryptocurrency exchange, Huobi Global has had a tough time dealing with the Chinese authority’s crackdown on crypto-related activities. Earlier, reports had emerged regarding the platform banning news user registration. Today, Huobi went on to confirm the news with the latest press release announcing the same to comply with local laws and regulations.
The post revealed that Huobi Global had ceased account registration for new users in Mainland China from the 24th of September. The exchange plans to gradually retire the user accounts from the region by the end of this year, i.e., by 31st Dec 2021. It also ensured the safety of users’ funds.
Huobi’s concluded,
“We will inform users of the specific arrangements and details through official announcements, e-mails, text messages, etc. Huobi Global has always been dedicated to offering digital asset trading services and ensuring the safety of customer assets while following all applicable laws. We apologize for any inconvenience caused and thank you for your understanding and support!”
After Huobi, will OKEx and Binance follow suit?
Following Huobi’s exit, the Chinese crypto ecosystem will witness a significant setback. Shortly after the People’s Bank of China [PBoC] published a notice that called for extensively stricter restrictions on crypto trading, the entire market took a hit. The latest move by Huobi, which happens to be one of the largest crypto exchanges that cater to mainland China customers, signifies that there is no challenging the authorities this time.
The notice, co-signed by ten agencies, stated that any entity conducting crypto trades would be subject to legal prosecution. This also encompasses those individuals and entities who reside in China but operate off-shore crypto platforms that offer service to the country.
As yet, neither Binance nor OKEx have notified their users about any possible changes in terms of registrations. However, the bigger question is, will the two rival crypto exchanges follow suit and succumb to the growing pressure by the Chinese authorities? The crypto market is currently trading in a tight rangebound. If the crypto exchanges happen to cave in, the market may witness fresh sell-offs in the near future.