Bitcoin Exchanges Cut Ties With Chinese Users Following Beijing’s Latest Crypto Ban

Representations of the Bitcoin cryptocurrency are seen in this illustration picture taken on June 7, 2021. (Edgar Su/Reuters)

Cryptocurrency exchange giants are cutting ties with Chinese users after Beijing vowed to crackdown on the virtual currency market last Friday.

Chinese cryptocurrency exchange Huobi Global said on Sunday it had stopped taking new customers in mainland China, effective from Friday. The prominent crypto exchange will retire existing mainland Chinese user accounts by the end of the year to keep in line with the new local regulations.

It comes after China’s central bank declared on Sept. 24 that all cryptocurrency-related transactions are illegal, including services provided by overseas crypto exchanges.

Binance, the world’s largest cryptocurrency exchange by volume, has also halted new account registrations with mainland China mobile numbers.

Chinese crypto exchanges began to shut down or moved offshore in 2017 after China banned such platforms from trading. China’s State Council announced a crackdown on bitcoin mining and trading practices in May this year.

The “mining” of virtual currency refers to the competitive process of mathematical computation through which the virtual currency is rewarded.

On Monday, shares in crypto-related firms tumbled, with crypto asset manager and trading firm HuobiTech plunging 23 percent.