Beijing Business Daily: The three major exchanges clear the cryptocurrency circle retreat

From the suspension of user registration in mainland China to the forced removal of users in mainland China, under the continuous crackdown of the regulatory authorities, domestic virtual currency transactions have been completely “cool”. The three leading virtual currency trading platforms Huobi, Binance, and OKEx have already Successive “official announcements” withdrew from the Chinese mainland market. Not only that, according to the statistics of Beijing Business Daily reporters, as of October 14, at least 10 virtual currency exchanges have announced the withdrawal of stock users in mainland China, and some small and medium-sized institutions have directly announced the closure. In view of the fact that exchanges cut off the trading channel is a foregone conclusion, many users in the currency circle have also begun to try to find a new trading path before the “limit”.

Head trading platform withdraws one after another

Since the central bank and other ten departments once again blocked virtual currencies and their trading activities on September 24, the virtual currency exchanges have also set off an ebb tide. On October 13, the top virtual currency trading platforms Binance and OKEx issued announcements one after another, explaining the regulatory policies in Mainland China.

According to the “Notice on Delisting C2C CNY Trading Zone and User Inventory in Mainland China” issued by Binance, in response to local government regulatory policy requirements, Binance C2C will delist CNY at 24:00, December 31, 2021. In the trading area, platform users will be checked at the same time.

Binance mentioned in the announcement that it will conduct a check on platform users. If the platform finds users in mainland China, their corresponding accounts will be switched to the “withdrawal only” mode, and users will only be able to withdraw, withdraw, redeem, and Liquidation operation. Binance will notify the corresponding users by email 7 days before the account switch.

OKEx also mentioned in the “Notice on Regulatory Policies in Mainland China” that the company has shifted its business focus to the international market since September 2017, and does not promote and serve the Chinese mainland market, and its website cannot be accessed in mainland China , App has also removed all application markets in mainland China. Will continue to maintain the “exit the Chinese mainland market” policy, and will not set up offices and teams in mainland China. Regarding how to manage users in mainland China who are still trading on the platform, OKEx did not provide details in the announcement.

Prior to Binance and OKEx, Huobi has issued a number of announcements on the clearing and withdrawal process of stock users in mainland China since September 24, explaining issues such as closing transactions, suspensions, and withdrawals.

For the withdrawal of the exchange, many industry analysts bluntly said it was the “only option.” Liu Feng, director of the Blockchain Technology and Application Research Center of Shanghai University of International Business and Economics, also said that judging from the previous documents issued by multiple ministries and commissions, China’s supervision of virtual currencies has maintained a high-pressure situation, and it is not surprising that virtual currency exchanges withdraw from the mainland market.

Regarding the rectification progress and follow-up business planning, reporters from Beijing Commercial Daily also learned more about Huobi and OKEx. Huobi said that the company is currently carrying out the settlement work in an orderly manner in accordance with the announced settlement plan, and will fully deploy overseas markets in the future. Regarding the Binance platform, no contact information has been found yet.

Users still have a fluke

As the head exchange confirmed its withdrawal, a reporter from Beijing Commercial Daily noticed in multiple public forums that many users have reported that they cannot download and use the exchange app by bypassing the application mall and directly authorizing them, but there are still some users There is a fluke mentality, trying to find ways to continue virtual currency transactions through overseas accounts and switching overseas exchanges.

“I have just re-identified through an overseas exchange, and I am still waiting for the result, I don’t know if it can be used. There is really no other better way at present, I can only wait for the turnaround and try a new platform.” Immersion Lin Wen (pseudonym), a user of the currency circle for many years, told a reporter from Beijing Business Daily.

Lin Wen said that in addition to the domestic exchanges, there are still many overseas exchanges that provide trading services, but it is not clear whether the specific business is for users in mainland China and whether the trading links are convenient, especially when it comes to Recharge, withdrawal and other processes. “Now even if you download the exchange app, you still face issues such as identity authentication.”

On October 14th, a reporter from Beijing Commercial Daily found that the corresponding exchange app can still be downloaded in the Apple Store by switching overseas accounts, but the registration pages of Binance and Huobi App are no longer available in mainland China. Regional user registration portal. With the OKEx App, users can conduct transactions after passing the authentication of their mobile phone number and ID card.

In addition, users of the currency circle in mainland China confirmed to a reporter from Beijing Business Daily that the Binance platform can still trade normally. In this regard, a reporter from Beijing Commercial Daily also asked Binance for verification, but could not find the contact information of the other party. As for Huobi, it has already started to deal with some transaction items in accordance with the rules of settlement and withdrawal. October 13, the fire stopped the currency Bitcoin , Ethernet Square, the ETP project transaction, the user is forced to recover positions.

Regarding the current situation of domestic users trying to conduct virtual currency transactions through other channels, Liu Feng pointed out that this action of domestic traders does not make much sense. This time the regulator is targeting the entire currency ecosystem. Both mining parties, intermediary transaction parties, or related organizations or individuals that provide transaction media under the chain are included in the scope of rectification. Even if it is changed to other places, as long as it is within the scope of mainland China, the existence of exchange transactions related to the renminbi and virtual currencies belongs to the scope of relevant legal rectification.

Blockchain industry observer Jiang Zhaosheng also emphasized that when major exchanges announce the gradual withdrawal of domestic users, if users are lucky, they may give some illegal virtual currency exchanges at home and abroad a chance. Eventually result in damage to personal assets. The regulator also clearly mentioned that the provision of services by overseas virtual currency exchanges to Chinese residents through the Internet is also an illegal financial activity. 

“Users should rationally view the restricted actions of cryptocurrency transactions, cooperate with the withdrawal behavior of related entities such as cryptocurrency exchanges, and actively respond to regulatory requirements while protecting the safety of personal property.” Jiang Zhaosheng said.

Strong supervision continues and is effective

In fact, since 2013, virtual currency transactions have been under strong supervision in mainland China. On September 24 this year, more than a dozen departments including the National Development and Reform Commission, the Central Bank, and the Supreme Law jointly issued a document calling for further prevention and disposal of virtual currency transaction speculation risks, and clearly included virtual currency “mining” activities in the eliminated industries.

With the further intensification of supervision, “mining” activities have been retired one after another, and relevant mining companies have also announced that they will no longer trade for Chinese users and choose to “go out to sea”. After undergoing operations such as blocking keywords and banning related information, the exchanges that directly provide virtual currency trading services are now also out.

Not only have the three leading virtual currency trading platforms announced their withdrawal from the Chinese mainland market, but also small and medium-sized virtual currency exchanges have “nowhere to put them.” According to incomplete statistics from reporters from Beijing Business Daily, including Binance, OKEx, Huobi and other platforms, as of October 14, at least 10 virtual currency exchanges have announced the withdrawal of existing users in China, and some small and medium-sized institutions are even more direct. Announced closure.

Liu Feng believes that this rectification is to prevent financial risks on the one hand, and on the other hand, under the dual-carbon strategy of “carbon peaking and carbon neutrality”, the key rectification of the energy-intensive behavior of virtual currency “mining”. The exit of the ecological circle is bound to be reasonable.

Jiang Zhaosheng emphasized that China’s strong supervision over virtual currencies is continuous and effective. This series of rectification issues will effectively maintain the economic and financial systemic stability and protect the safety of people’s lives and property. At present, China has made it clear and has long-term adhered to the development of a domestically-made independent and controllable alliance chain as the development direction of blockchain technology. All public chain-based virtual currency activities involving financial attributes will be severely regulated and cracked down.

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