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Huobi Global, a Chinese cryptocurrency exchange, announced on Sunday that it will stop processing transactions for existing mainland users by the end of 2021, after refusing to accept new customers since September.
Huobi Global Stopped Taking New Chinese Mainland Customers
Several cryptocurrency exchanges are expected to leave the Chinese mainland market before the end of the year, three months after China issued its most comprehensive restrictions prohibiting bitcoin transactions and mining. On Friday, China's officials tightened their grip over cryptocurrency transactions and mining, stating that foreign exchanges are prohibited from providing services to mainland investors via the internet.
In May, China barred financial institutions and payment businesses from providing services connected to cryptocurrency transactions, threatening to prosecute bitcoin miners and traders.
Huobi Global announced that from 11:00 a.m., (December 14 is Beijing Time) mainland customers will be unable to acquire cryptocurrencies on the platform. The corporation will shut down cryptocurrency exchanges on December 15 and crypto-asset trading by December 31 at noon. Users on the mainland can still log in to their accounts and request a withdrawal. The feature is scheduled to be available for 1-2 years.
Several Cryptocurrency Exchanges will Quit
Several cryptocurrency exchanges will quit the Chinese mainland market in December, including Binance, KuCoin, and others. Amid a global cryptocurrency crackdown, China has stepped up its efforts to restrict the crypto market as concerns grow that the highly volatile digital currencies could jeopardize financial and monetary system stability, increase systemic risk, promote financial crime, and harm investors.
Furthermore, the act of obtaining bitcoin – known as "mine" – consumes a lot of energy, making it difficult for China to meet its environmental targets, which include reaching a peak in emissions by 2030 and becoming carbon-neutral by 2060. Inner Mongolia, China's coal-powered area, prohibited all crypto mining projects due to environmental concerns in April.
Bitcoin's value plummeted as a result of Friday's legislation. Its price is now hovering at $43,000, down from $47,659 a week ago.