Huobi Global, the top cryptocurrency exchange for Chinese users became the first crypto platform to announce the termination of services in the country. The announcement comes in the wake of China’s latest call for a crypto crackdown. The popular crypto exchange has closed new registrations using mainland China mobile numbers. However, new registrations are still available for Hing Kong users.
Earlier in June this year, Huobi has banned Chinese users from the riskier crypto derivatives market during the last crackdown cycle in May-June.
People’s Bank of China released a detailed guide on the crypto crackdown and deemed all crypto transactions illegal. The regulatory documents that are considered first of their kind give detailed instructions on the prevention of mining activities and the prevention of crypto trading in the country. Along with that the Chinese Central Bank also warned foreign crypto exchanges from offering any services in mainland China.
Although, China banning cryptocurrencies is nothing new and it has become a norm of sorts during the bull cycles, be it 2017 or the current one. However, Chinese insiders claim the current set of guidelines is something never seen before as it involves 9 other key institutions including Supreme Court. Other popular Chinese crypto exchanges such as OKEx and even Binance are expected to make similar announcements.
Crypto Market Looks More Resilient Against China FUD
China FUD has often resulted in a great crypto market sell-off every bull cycle, the recent May market mayhem that saw nearly $500 billion getting wiped out of the crypto market was also believed to be fueled by the China crypto ban. However, the crypto market seems to be more resilient against the FUD as it saw a minor correction in the price of top crypto assets such as Bitcoin and Ether when compared to previous sell-offs.
Trade data from crypto analyst Santiment shows, despite a sharp correction of near 5% in the wake of the news, the traders have used the opportunity to buy the dip.
With the news of #China (again) banning #crypto trading and mining once again, Friday prices plummeted. As smoke has cleared, many traders have used this as nothing more than another #buythedip opportunity. https://t.co/kE1PpI4jy6 pic.twitter.com/R58CFPSHL3
— Santiment (@santimentfeed) September 24, 2021