The recent death punch to both bitcoin and its crypto counterparts by way of China has got the entire digital currency space in a grip of fear. Now, many crypto exchanges are beginning to drop Chinese customers as a means of avoiding trouble down the line. They are not accepting traders from China, nor are they allowing the Chinese customers they already have onboard to stick around much longer.
China Is Hurting Its Crypto Traders
China has been on a serious roll to practically eliminate cryptocurrency from its terrain altogether over the past several months. The country initially decided that it was going to end all mining projects within its borders and ordered everyone involved in such businesses to either shut down their companies or leave the nation within a certain period.
The news was met with great anger and skepticism from crypto analysts around the world, who felt that the move was not only damaging to crypto, but to the country itself. They were convinced this was going to set China back several decades, though these arguments ultimately fell on deaf ears as the country continued to roll ahead.
But this wasn’t enough. No… The country decided it was going to push even further, and last week, China announced that all bitcoin and crypto transactions and related activities were illegal, and thus could not be performed without consequence. Bitcoin then took a serious hit to its price, falling from around $44,000 per unit to approximately $42,000.
Chinese traders had enough to deal with thanks to their own government officials deciding what they could do with their money. The big questions now are, “How do they move their funds?” and “Do they quickly sell all the crypto they own before things get any worse?”
Many crypto exchanges are now taking quick action. Huobi and Binance, for example, are two of the globe’s biggest crypto firms. They have announced in recent statements that they will not be accepting any more customers living on mainland China. Also, Huobi has taken things a step further by saying that all Chinese customers currently enjoying its services must leave before 2022.
Du Jun – co-founder of the Huobi Group – explained in an interview:
On the very day we saw the notice, we started to take corrective measures.
Another digital currency company known as Token Pocket has stated it would not be providing any more crypto wallets to Chinese customers, and that traders from China presently using its tools and services would have to move elsewhere. The company also said that it would “actively embrace” regulation.
Perhaps Other Nations Will Do Things Differently
The good news is that some analysts don’t believe other countries will follow in China’s footsteps, with figures like John Wu – president of Ava Labs – commenting:
I don’t believe China’s approach will set a standard for how other countries approach regulating this space.