Binance — the largest cryptocurrency exchange in the world by market value — is set to close down the yuan trading feature on its customer-to-customer platform on Dec. 31, the company said today in a statement, in a move to “meet regulatory requirements of the local government.”
Fast facts
- Binance also said it will conduct a thorough inspection on its users and if it ever identifies those located on the Chinese mainland, these users accounts will be switched to the “withdrawal only” mode, to only allow them to withdraw, cancel orders, redeem and close position holdings, according to the statement.
- The crypto exchange said it withdrew from the Chinese mainland market in 2017 and does not engage in exchange business in mainland China.
- Binance’s move follows China’s stepped-up ban on crypto-related transactions announced in a notice jointly issued on Sept. 24 by 10 top financial, public security and legal authorities. That reflects the harsh stance the country has taken on crypto trading. It has repeatedly criticized the “speculative nature” of cryptocurrencies, “resulting in criminal activities including money laundering, illegal fundraising, fraud and pyramid schemes,” the central bank reiterated in another statement last month.
- Following the latest ban, Huobi, another major crypto exchange, quickly reacted and stopped account registration for new customers in mainland China effective Sept. 24, according to a company statement. It also said it will close down the accounts for existing mainland Chinese users by Dec. 31.
- More than 30 crypto-related companies have withdrawn from the mainland since China dropped the news of an intensified crackdown two weeks ago, according to Forkast.News’ calculation based on publicly available information.