More than a Dozen Cryptocurrency Firms Stop Servicing Chinese Clients
Many participants in China’s crypto industry have been forced to cease operations because of the country’s ruthless onslaught on the industry. More than 20 Chinese cryptocurrency businesses have shut down their services for Chinese customers as of Thursday, October 7.
Colin Wu, a well-known Chinese journalist, stated that these companies have made it clear that they would no longer be present in the Chinese market. China’s central bank, the People’s Bank of China, has recently taken a number of regulatory actions, including (PBoC).
Ten government agencies, including the People’s Bank of China, published rules two months ago to curb the “virtual currency hype.” A number of cryptocurrency trading platforms, mining businesses and websites have reacted to these legislative regulations as a consequence.
Huobi, one of China’s largest cryptocurrency trading platforms, said that it has halted accepting fresh user enrollment as a result of the PBoC’s September 24 directive.
As said before, Huobi plans to terminate its current accounts in the People’s Republic of China on December 31, 2021. For the last several years, Huobi has been among the largest Chinese crypto trading platforms. The rapid impact of regulatory crackdown on the Chinese crypto ecosystem has come as a big shock. Huobi’s founder, Li Lin, expressed his regret in pulling the company out of China entirely. But he’ll have to do it for the sole purpose his loved ones.
“Chinese province Jiangsu recently performed an investigation and discovered that 4,502 Jiangsu addresses were cryptocurrency mining. As a consequence, the government has started looking into virtual money “mining” in great detail. Jiangsu Provincial Communications Administration pays significant attention to extensive investigation of virtual currency “mining” conduct in our province, according to the latest investigation report from the administration. 136.77 Mbps was recorded in our province’s export traffic from virtual currency mining pools, with 4502 IP addresses engaging in “mining.” This data has been verified. A computer’s daily energy usage and processing power resource use are both above 10PH/s.”
China Securities Daily: Over 20 cryptocurrency companies announced their withdrawal from the Chinese market. https://t.co/8VxaZ9Qb2S
— Wu Blockchain (@WuBlockchain) October 8, 2021
Huobi founder Li Lin: I’m sorry for Chinese users. I don’t want to go abroad for the sake of my family. If you don’t have Huobi, you still have binance and okex. pic.twitter.com/FQ5Kb1jBC0
— Wu Blockchain (@WuBlockchain) October 6, 2021
Further, the government observed that large-scale mining operations were taking place in Suzhou, Xuzhou, and Nanjing. IP addresses tracked revealed that 21% of individuals associated with “government entities, universities, and businesses” accessed the network and engaged in cryptocurrency “mining” during that time period.
It’s also been announced that the Provincial Communications Administration would create a “multi-dimensional, multi-level” clearance system to help with the inquiry and work with the appropriate division. Chinese authorities will be on it until every crypto focused business ceases operations or face expulsion.