Huobi Global, China’s largest cryptocurrency exchange, became the first cryptocurrency platform to announce the discontinuation of services in the country.
The announcement follows China’s most recent call for a crypto crackdown. The popular cryptocurrency exchange is no longer accepting new registrations with mainland China’s mobile phone numbers. However, fresh registrations for Hong Kong users are still allowed.
Earlier this year, in June, Huobi restricted Chinese customers from the riskier crypto derivatives market as part of the May-June crackdown cycle.
The People’s Bank of China published a comprehensive guide to the crypto crackdown, declaring all cryptocurrency transactions unlawful. The regulation guidelines, which are believed to be the first of their sort, contain specific instructions on how to prevent mining activities and crypto trading in the country. Additionally, the Chinese Central bank has warned foreign cryptocurrency exchanges against operating in mainland China.
Although China’s prohibition of cryptocurrencies is not new and has been a sort of norm throughout bull cycles, such as the one that began in 2017 or the current one. However, Chinese insiders assert that the present set of rules is unprecedented, as it covers nine additional significant institutions, including the Supreme Court. Other big Chinese cryptocurrency exchanges, including OKEx and perhaps Binance, are anticipated to follow suit.
The Cryptocurrency Market Appear to Be More Resistant to China FUD
China FUD has frequently resulted in a massive crypto market sell-off during each bull cycle, and the current May market mayhem that saw roughly $500 billion wiped out of the crypto market was also attributed to the China crypto ban. However, the crypto market appears to be more impervious to FUD, as the price of prominent crypto assets such as Bitcoin and Ether experienced a minimal correction in comparison to past sell-offs.
According to trading data from crypto analyst Santiment, despite a near-5% drop in the aftermath of the news, traders took advantage of the opportunity to buy the dip.
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