China Crypto Ban: Over 20 cryptocurrency companies withdraw from Chinese market

The latest development in the Chinese Crypto ban has revealed that, as of October 7, over 20 virtual currency companies have suspended services for Chinese users, followed by an absolute withdrawal from the Chinese market, according to local news sources cited by the Chinese Journalist, Colin Wu on Twitter.

China Securities Daily: Over 20 cryptocurrency companies announced their withdrawal from the Chinese market. https://t.co/8VxaZ9Qb2S

— Wu Blockchain (@WuBlockchain) October 8, 2021

As People’s Bank of China (PBoC) updated its crypto ban guidelines by the end of last month in lieu of rectifying the “virtual currency hype”, many crypto businesses began shutting down operations to prevent further regulatory confrontation. The latest guidelines extend into even the smallest aspect associated with cryptocurrencies and break them from the core.

The Chinese central bank’s guidelines to completely banish the “illegal” and “highly speculative” crypto market circled around banning three core crypto activities including, crypto mining, crypto trading, and service offerings by Foreign crypto exchanges to Chinese customers.

Huobi is all Packed up and ready to leave the Chinese market

Followed by the Chinese Central Bank’s announcement, the cryptocurrency exchange giant, Huobi declared the suspension of new account openings, along with ending new account registrations for its Chinese users in lieu of the latest policies against crypto exchanges. Huobi had already announced the closure of even the existing accounts of mainland China users by midnight on Dec. 31, 2021. Earlier this month, the exchange platform issued an announcement again, confirming the details of the withdrawal time of users in China.

After being China’s native exchange for years, Huobi’s fallout appears surreal to the Chinese crypto community. However, as time passes the exchange’s shut down in the nation is gaining speed. Recently, Huobi’s second person and COO, Zhu Jaiwei made a public resignation. Nevertheless, the founder explained that Zhu Jaiwei had already quit earlier this year, but the exchange kept the news hidden to prevent panic. Furthermore, Huobi founder, Li Lin is moving out of China and has publicly apologized to the community via WeChat, claiming that his departure is intentioned towards his family’s safety.

Huobi founder Li Lin: I'm sorry for Chinese users. I don't want to go abroad for the sake of my family. If you don't have Huobi, you still have binance and okex. pic.twitter.com/FQ5Kb1jBC0

— Wu Blockchain (@WuBlockchain) October 6, 2021