Binance withdrew operations from the Chinese mainland market in 2017. In September 2021, the company also stopped registering individuals with Chinese phone numbers.
Following series of regulatory crackdowns on crypto exchanges providing services in China, Binance has announced it will remove the Chinese Yuan from its consumer-to-consumer trading platform.
Recall that on September 24, Chinese regulators declared any crypto-related transaction in the country illegally and promised to take action against any crypto exchanges responsible. This led many crypto-related companies operating within the company to make adjustments.
According to the press release on the company website, all customers in the CNY trading zone at 24:00 (East Eighth District Time) on December 31, 2021, will be delisted.
The firm also announced plans to conduct a full sweep of the platform. The aim is to take inventory of any users trading from mainland China. Trading accounts found to belong to such users will be demoted to a “withdrawal only” mode.
Before the account switch happens, users will get a 7-day advance notice. According to the press release, the time will give the users a chance to “withdraw, redeem, and close positions.”
Binance Out of Regulatory Crosshair
Since the September 24 announcement, several crypto firms and exchanges have enacted plans to shut down operations in China. Others have decided closing any China-based account is the right course of action.
Huobi, one of the largest rivals of Binance also suspended its Chinese Yuan OTC marketplace. Additionally, the company also closed down all verified accounts with mainland China IDs.
Previously, Binance withdrew operations from the Chinese mainland market in 2017. After the September 24 announcement, the company also stopped registering individuals with Chinese phone numbers. It didn’t stop there. A few days later, the company stated that it does not engage in exchange business in mainland China.
Now, the company has announced it will delist all OTC accounts. However, the firm did not indicate if it will also halt all China-based accounts. According to the company release, “Binance has always attached great importance to compliance obligations and has always strictly complied with the relevant requirements of local regulatory agencies.”
Following the announcement, prices of several cryptocurrencies including Bitcoin and BNB, the token of Binance, dropped. As of the time of writing, Bitcoin had dropped by 4.18% to $54,685.91 according to CoinMarketCap. Interestingly, BNB, the exchange token of Binance rose by 15.26% to $454.84.