Huobi Global, a digital asset trading platform with Chinese roots has announced its intent to leave the Chinese Market. Chinese-rooted crypto trading platform Huobi Global said that it would stop processing transactions from existing customers on the Chinese market by the end.
Huobi Global Halts Services in the People’s Republic
Users based on mainland China will be unable to use the cryptocurrency exchange Huobi Global. In a statement quoted by the English-language Chinese TV channel CGTN, the company announced on Sunday that starting from 11:00 a.m. Beijing time on Dec. 14, users in the People’s Republic will not be allowed to purchase cryptocurrencies.
Huobi Global stated that it would cease operations as a crypto exchange on December 15, 2018. All crypto asset trading will be stopped by noon on Dec 31, according to Huobi Global. The platform said traders can still log in to their accounts to request withdrawals of any remaining assets.
According to the report, several cryptocurrency exchanges plan on pulling out of China’s market by 2021. Their moves come after Beijing’s decision this year to reiterate restrictions on cryptocurrency transactions which was followed by a crackdown on trading and mining. The list also includes major platforms like Binance, Kucoin and others.
According to the state-run CGTN, China is intensifying its efforts to control cryptocurrency markets amid what it describes as a worldwide crackdown on crypto. “Concerns grow that the highly volatile digital currencies could undermine the stability of financial and monetary systems, increase systemic risk, promote financial crime and hurt investors,” the news service adds.
The People’s Republic banned crypto-related activities back in 2017 and while the government went after coin trading and token sales, authorities did not interfere with mining until this spring. In May, the State Council, the cabinet of ministers in Beijing, decided to clamp down on the crypto industry following President Xi Jinping’s pledge for the country to achieve carbon neutrality in the next four decades.
Bitmain, a leading mining hardware manufacturer, provided another example for a large crypto company leaving the Chinese market. Chinese manufacturer Bitmain announced that its products would not be shipped to mainland China in October. The move was made to comply with local regulations. Bitmain, as with many other businesses, stressed that the decision did not affect its operations within the Hong Kong Special Administrative Region and the neighboring Taiwan.
What do you think will happen to the crypto market in China as more companies leave? Let us know your thoughts in the comment section.
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