Crypto platforms Cobo, Gate.io leave mainland following China crypto ban

Cryptocurrency investors on the Chinese mainland continue to feel the chill from the country’s latest crypto ban, as more and more industry players exit the Chinese market. Cobo, a Singapore-based crypto management platform, is among the latest to opt out.

Fast facts

• In order to reflect the regulatory requirements on the mainland, Cobo said Wednesday it had stopped registering new accounts for mainland Chinese users since May, and it will phase out existing users there under the premise of ensuring the security of the users’ assets.

• Cobo added that it will stop offering services to mainland Chinese users starting from Oct. 31.

• Meanwhile, crypto exchange Gate.io announced Wednesday that it has blocked visits of mainland Chinese users to its website.

• OKEx, another major crypto exchange with roots in China, also said Wednesday that it had diverted its business focus to the international market since September 2017 and had not targeted the Chinese mainland market since then. It said its website is not available on the mainland and its app is not downloadable on the Chinese mainland app store.

• OKEx added it has set up offices in major countries around the world and has over 1,000 employees overseas, and that it will stick to its “exiting the mainland market” policy without running any office there.

• These industry players’ moves follow China’s stepped-up ban on crypto-related transactions announced in a notice jointly issued on Sept. 24 by 10 top financial, public security and legal authorities. That reflects the harsh stance the country has taken on crypto trading. It has repeatedly criticized the “speculative nature” of cryptocurrencies, “resulting in criminal activities including money laundering, illegal fundraising, fraud and pyramid schemes,” the central bank reiterated in another statement last month.

• More than 30 crypto-related companies have withdrawn from the mainland since China dropped the news of an intensified crackdown two weeks ago, according to Forkast.News’ calculation based on publicly available information.