Binance Abandons China and Chinese Traders Amid Regulatory Crackdown

Key Takeaways:

  • Binance terminates the use of the Chinese Yuan as a FIAT currency.
  • Further, Binance will no longer cater its services to Chinese traders.
  • Earlier this week, Bitman announced that it will no longer supply Bitcoin mining equipment to China.
Binance abandons China
Binance abandons China

The world’s largest cryptocurrency exchange Binance responds to the regulatory requirements of the local government by announcing CNY (Chinese Yuan)’s termination at the end of the year.

In addition to this, Binance will lead an inventory of platform users imposing certain restrictions. If the platform finds users in mainland China, their respective accounts will be switched to the withdrawal only mode. Binance will inform the users via email 7 days before the account switch.

With this move, the already seemingly thin options for Chinese users will deteriorate even further. 

Crypto proscription from China continues

In China, cryptocurrencies are not recognised as legal cash, and the financial system does not accept or provide services related to them. The government designated bitcoin as a virtual commodity in 2013 and stated that individuals were free to trade it online but later in 2017, the government forbade all cryptocurrency trading platforms from converting cryptocurrencies into legal tender and vice versa, along with shutting down all Initial Coin Offerings (ICOs).

Binance’s decision to end OTC trading for the Chinese yuan comes only weeks after Huobi, another prominent regional exchange, announced its exit from the Chinese market. The country’s central bank banned local organisations from doing business with companies that deal in digital assets last month. In any case, this most recent move will end that service and the capacity for Chinese traders to utilize their own currency.

Major crypto analytics and trading websites like CoinGecko, CoinMarketCap, and TradingView have been blocked by State internet censors in addition to including crypto mining to the long list of crypto concerning activities that the State will not permit on 9th October. 

 WeChat, a famous social platform in the region has likewise begun blocking searches for crypto exchanging platforms in China. Chinese journalist Colin Wu shared a tweet asserting that sites in the nation have either blocked or are currently in the process of hindering trades and other crypto platforms.

No More Mining Equipment for Chinese Miners

Bitman announced in a blog post on Sunday that it would expand its operations outside China and will no longer supply Bitcoin Mining equipment inside China.

“From October 11, 2021, Antminer will stop shipping to mainland China. For customers in mainland China who have purchased long-term products, our staff will contact them to provide alternative solutions.”

Bitman

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