Breaking: Huobi Terminates Services For Chinese Users In the Wake of Crypto Ban

By Prashant Jha
Published September 25, 2021 Updated September 25, 2021
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Breaking: Huobi Terminates Services For Chinese Users In the Wake of Crypto Ban

By Prashant Jha
Published September 25, 2021 Updated September 25, 2021

Huobi Global, the top cryptocurrency exchange for Chinese users became the first crypto platform to announce the termination of services in the country. The announcement comes in the wake of China’s latest call for a crypto crackdown. The popular crypto exchange has closed new registrations using mainland China mobile numbers. However, new registrations are still available for Hing Kong users.

Earlier in June this year, Huobi has banned Chinese users from the riskier crypto derivatives market during the last crackdown cycle in May-June.

People’s Bank of China released a detailed guide on the crypto crackdown and deemed all crypto transactions illegal. The regulatory documents that are considered first of their kind give detailed instructions on the prevention of mining activities and the prevention of crypto trading in the country. Along with that the Chinese Central Bank also warned foreign crypto exchanges from offering any services in mainland China.

Although, China banning cryptocurrencies is nothing new and it has become a norm of sorts during the bull cycles, be it 2017 or the current one. However, Chinese insiders claim the current set of guidelines is something never seen before as it involves 9 other key institutions including Supreme Court. Other popular Chinese crypto exchanges such as OKEx and even Binance are expected to make similar announcements.

Crypto Market Looks More Resilient Against China FUD

China FUD has often resulted in a great crypto market sell-off every bull cycle, the recent May market mayhem that saw nearly $500 billion getting wiped out of the crypto market was also believed to be fueled by the China crypto ban. However, the crypto market seems to be more resilient against the FUD as it saw a minor correction in the price of top crypto assets such as Bitcoin and Ether when compared to previous sell-offs.

Trade data from crypto analyst Santiment shows, despite a sharp correction of near 5% in the wake of the news, the traders have used the opportunity to buy the dip.

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Disclaimer
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
About Author
Prashant Jha
1070 Articles
An engineering graduate, Prashant focuses on UK and Indian markets. As a crypto-journalist, his interests lie in blockchain technology adoption across emerging economies.

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