• Here’s how Chinese crypto businesses are dealing with the ban

  • The cryptocurrency market has been moving into a downward spiral as the price of the largest cryptocurrency plunged, following China’s announcement about the state of cryptocurrencies in the country. As a result of this news, many crypto institutions and projects in China have closed down.

    According to data compiled by Chinese crypto journalist Colin Wu, Ethereum mining pool Xinghuo Pool may have been the first to announce the discontinuation of mining pool services to mainland Chinese users in order to comply with changing regulatory policies. Following the miner service, NBMINER, a graphics card mining machine management software, announced the closure of their services to users in the country.

    Users were taken aback even more when one of the country’s largest cryptocurrency exchanges, Huobi, announced a halt in the registration of new customers from the country. Wu claims that

    “Mainland China’s country/region selection for Huobi APP registration has been removed, but Taiwan and Hong Kong remain.”

    This was not the exchange’s first attempt to comply with changing laws. Indeed, local exchanges were asked to stop posting trades between fiat money and crypto tokens in 2017. This compelled Huobi and Binance to leave the country and establish themselves in Singapore and Malta, respectively, to continue operating their main trading platforms.

    Binance was already in the crosshairs of regulators in many countries as Huobi made yet another change to its services. However, the exchange stated unequivocally that it has not permitted Chinese users to use their exchange since 2017. According to Binance,

    “We have not permitted Chinese citizens to use it since 2017, and we have no exchange business in China.”

    According to a Binance spokesperson,

    “Binance takes compliance very seriously and is committed to adhering to local regulator requirements wherever we operate.”

    Despite the exchanges’ efforts to navigate changing laws, users have previously been able to access their services, which include over-the-counter trading and crypto-to-crypto transactions. Because the rules have become more stringent, crypto users in China may find it difficult to trade in the assets, but it is not impossible. Despite the fact that China monitors the internet in the country, implementing a crypto ban will be difficult. Users may find another way to invest and participate in the larger crypto economy.

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