Written/Translated by: Sister Karamazov
On September 24, the People’s Bank of China and other ten departments issued the notification on “Further Preventing and Disposing of the Risks of CryptoCurrency Trading Hype”, stating that the recent cryptocurrency trading activities are “on the rise, disrupting economic and financial order”, and crypto related business activities are “illegal financial activities”, therefore was resolutely banned “in accordance with the law”. Plus, CCP claimed that crypto mining cost a lot of electricity, which is in extreme short supply within Communist China these days.
After this notification, several crypto trading platforms have exited mainland China one after another:
- Huobi Global has suspended the registration of new users in Mainland China on September 24, 2021 (UTC+8). For the existing users who are indeed from Mainland China, clearing and refunding will occur before 24:00 on December 31, 2021 (UTC+8) under the premise of “ensuring the safety of user assets”. (Regarding Huobi, Mr. Miles Guo has warned about Huobi as early as March 18 this year, and also said on September 29 that the main purpose of Huobi is money-laundering and transactions on deep web for CCP. It will bound to disappear.)
- Binance reportedly has suspended user registration in mainland China. “Mainland China” option has been deleted from the country/region selection for its App mobile phone registration, while Taiwan, Hong Kong and Macau regions are still retained.
- In addition, some small and medium-sized crypto trading platforms simply chose to suspend operations. For example, on September 25, The BHEX (BlueHelix Exchange) platform will gradually close the platform services. Only cash withdrawal services will be provided after October 9, and will be permanently closed on October 16, 2021. After the platform is closed, users will not be able to use any trading functions of the website and App.
- Not only crypto trading platforms, but some crypto related tools have also begun to terminate their business within mainland China: on September 25, the data query website DeBank’s official website page showed that it has now terminated some functions and services for users in Communist China, and only retains the function of balance checking.
- Crypto mining companies were not spared either. The companies that announced the suspension of operations within Communist China include F2Pool, SPARKPOOL, QKL123, AICoin, CoinBene, AEX, ZKSWAP, TokenPocket, NBMINER, HyperDAO, CoinGecko, CoinMarketCap, TradingView and other companies that provide crypto-related services.
Because of blockchain’s unique decentralized structure, nobody except the owner can actually control the cryptocurrency he or she owns, not even CCP. That’s why CCP has to impose administrative measure to prevent people from buying cryptos, i.e., prevent money from escaping. And it’s interesting to notice that CCP enforced this notification right before the issuing of Himalaya Coin, which is set to take place in October.
(The views and opinions expressed in this article are those of the author’s own)