Bybit, a popular crypto derivatives exchange that originated from China has announced it would be terminating all accounts registered with a Chinese phone number by June 15. The platform has already banned Chinese IP address last year and the decision to remove all accounts associated with a Chinese phone number seems to be in light of a new crackdown on crypto trading and mining by the Chinese government.
Derivatives exchange Bybit has given the most severe measures: on June 15th, it will close the accounts of all registered users of Chinese mobile phone numbers. Bybit banned Chinese IP in 2020. It was founded by the Chinese team in Shanghai. pic.twitter.com/JYnqXQ2bAN
— Wu Blockchain (@WuBlockchain) May 25, 2021
The measure was taken by the derivative exchange seems to be the most severe among many other exchanges that have either paused their services to Chinese customers or are awaiting more clarity from the authorities.
China had banned crypto trading and exchanges by 2017, but despite the regulatory clampdown crypto investments have flourished especially this bull season. The development of the digital yuan, the national CBDC was seen as a measure to ensure complete control over the flow of money put of the country which decentralized crypto-assets do not offer.
China’s Recent Crackdown on Crypto Trading & Bitcoin Mining Most Severe?
China over the years has announced a crackdown on crypto trading on several occasions which is understandable as it is prohibited in the country. However, the most recent crackdown seems to be most severe owing to the nearing digital yuan launch. The crackdown on Bitcoin mining is also nothing new, but in recent times the central government has pledged to become carbon neutral, and excessive mining in rural provinces has led to the failure of States to meet their carbon emission goals.
While the China FUD led to panic selling among new investors, the veterans in the space believe the crackdown would only help Bitcoin mining to become more decentralized and renewable energy focused.