The exchanges through which Cryptocurrencies move are taking their hands off from Chinese clients, immediately after the action taken by Beijing on banning all sorts of mining and trading of crypto. Having put efforts of many years spas to have control in this sector, 10 potential Chinese government bodies involving Central Bank were of the saying that overseas exchanges were being banned from providing services to Chinese Investors through internet and had taken an oath to together take off illegal cryptocurrency related activities.
Where the two most accepted by Chinese Users and largest exchanges as Huobi Global and Binance had stopped newer registrations of accounts by the Chinese customers. In addition to this, Huobi has mentioned that it would also take steps to clean the already had accounts by the end of the year.
To this Huobi Group co-founder had also mentioned that from the very first day after seeing the notice , they started taking necessary steps. Where Du had not given an idea of how many prospective users would get affected. It only mentioned that Huobi which was at some time the biggest Crypto Exchange, had covered global expansion strategy long time back and so have seen speedy growth in Southeast Asia and Europe.
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Risk Associated With Chinese Users
The shares of related firms of Crypto dropped down on Monday with the Huobi Tech plunging 23% and OKG Technology Holdings Ltd. (a Fintech Company) which is majorly owned by Xu Mingxing ( founder of crypto exchange OKcoin) having lost 12%. Where one of the famous service provider of Crypto wallets; Token Pocket, also declared by way of notice to its clients that services to Chinese users would be terminated, specially for those who are involved in failing to follow the Chinese policies. But Token Pocket further mentioned that it would happily accept cooperation from China concerning blockchain technologies.
About Chinese Crypto Exchanges
Most of the Chinese Crypto Exchanges had either closed or moved offshore in 2017 after the action taken by China, being the world’s largest Bitcoin trading and mining Centre had put a ban on such trading activities to convert legal tender into cryptocurrencies. Further in May, even the State Council of China had taken oath to ban trading and mining of Bitcoins.
Various Chinese Crypto companies have moved out of China over last few months as per to Flex Yang who is the CEO and founder of Babel Finance. New business headquarters were opened in Singapore in September by the Chinese Crypto financial services provider. In addition to this service provider, the crypto asset management; COBO also shifted it’s headquarters from Beijing to Singapore, showing a move out from China. Such a move was taken by many just cause of the decision taken by China to stop converting legal tender into cryptocurrencies and the reverse for those who are trading with China based crypto exchange.
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