Cryptocurrency exchanges have begun cutting off their platforms to Chinese users after the country announced an aggressive crackdown on the digital assets last week.
Trading company Binance announced that it is no longer accepting new account registrations originating from mainland China. The company’s domain has been blocked in China for years, although it is also now barring registrations from Chinese cellphone numbers, according to Business Insider.
“Binance takes its compliance obligations very seriously and is committed to following local regulator requirements wherever we operate,” a Binance spokesperson said.
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Another major exchange working to shed Chinese users after the crackdown was announced is Huobi Global. The company announced that it will stop working with Chinese users by the end of the year and vowed to “ensure the safety of users’ assets,” although it didn’t provide details.
“We will inform users of the specific arrangements and details through official announcements, e-mails, text messages, etc.,” Huobi said in a statement. “Huobi Global has always been dedicated to offering digital asset trading services and ensuring the safety of customer assets, while following all applicable laws.”
The value of Huobi Token, the exchange’s digital coin, has taken a nosedive amid the Chinese crackdown. It is now worth about half of what it was prior to China’s surprise Friday announcement.
The People’s Bank of China said that all cryptocurrency transactions are now illegal and that online services offering trading for cryptocurrencies and overseas cryptocurrency exchanges are outlawed. Beijing also vowed to cull the country of any cryptocurrency mining within its borders.
TokenPocket, a digital wallet for storing cryptocurrency, announced over the weekend that it would also be terminating some functions for users in China. The company said that it chooses to “embrace relevant regulatory provisions” from Beijing.
The newest restrictions on cryptocurrencies follow other denunciations and regulatory moves against cryptocurrencies by the Chinese government. In May, Chinese Vice Premier Liu He called for the “crackdown on bitcoin mining and trading behavior and resolutely prevent the transmission of individual risks to the social field.”
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Cryptocurrencies, which are hyperreactive to regulatory jitters, fell sharply following China’s announcement on Friday. Bitcoin plunged more than 6% upon the news, dropping to about $41,000. Ethereum lost nearly 9% of its value, dropping to below $2,800, and Ripple retreated by more than 8% on Friday morning.
Since the initial drop, Bitcoin and other cryptocurrencies have settled down a bit, with the largest cryptocurrencies trading at about even from the day before. Bitcoin was ping-ponging between about $43,000 and $44,000 on Monday after hitting a multimonth high earlier in September, trading at nearly $53,000.
