Application of Huobi Global. / CFP

Application of Huobi Global. / CFP

The Chinese cryptocurrency exchange Huobi Global stopped taking new customers from the Chinese mainland on Friday and would end contracts with customers in the region by the end of 2021, the exchange said on Saturday in a report. release, in order to comply with local regulations.

The move follows China’s latest regulations to ban cryptocurrency transactions and mining in the country on Friday. It is the most detailed and extensive to date of the country’s major regulators, underscoring the central government’s commitment to regulate the Chinese crypto market.

Friday’s regulations clarified that cryptocurrency-related activities and affairs, including exchanging, trading, providing correspondence services for transactions, funding token issuance, and trading on virtual currency derivatives, are all illegal. Overseas exchanges are also prohibited from providing services to mainland Chinese investors via the Internet.

Huobi Global said in the statement that it will proceed with an orderly exit of its existing mainland customers on the assumption that the security of their assets is guaranteed. Specific rules for compensation and reimbursement will be notified to customers through announcements, emails, onsite letters and short messages.

Screenshot of Huobi Global’s statement.

Screenshot of Huobi Global’s statement.

In May, China banned financial institutions and payment companies from providing services related to cryptocurrency transactions, promising to crack down on bitcoin mining and trading.

China has stepped up efforts to restrict its crypto market amid a global cryptocurrency crackdown, regarding highly volatile digital currencies that could undermine the stability of financial and monetary systems, increase systemic risk, promote financial crime and harm investors.

Additionally, the process of obtaining cryptocurrency – “mining” – is quite energy intensive, preventing China from meeting its environmental goals of peaking emissions by 2030 and achieving neutrality. carbon by 2060. China’s coal-fired region of Inner Mongolia banned all cryptomining projects in April over emissions concerns.

Friday’s regulations sent Bitcoin tumbling down. Now its price is bouncing around $ 43,000, up from $ 47,659 a week ago.

Reports said on Saturday that new users from mainland China could no longer register with Binance, the world’s largest bitcoin and altcoin crypto exchange by volume.

Read more: What Makes China a Global Cryptocurrency Mining Hub?

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