Bitcoin is de-sinicized again: 13 institutions announced their withdrawal from the mainland

On September 24, 10 ministries and commissions including the Central Bank and the Ministry of Public Security jointly issued the “Notice on Further Preventing and Disposing of the Risk of Hype in Virtual Currency Trading” (hereinafter referred to as the “9.24 Notice”).

The “9.24 Notice” specifically emphasized that the provision of services by overseas virtual currency exchanges to Chinese residents through the Internet is also an illegal financial activity. For domestic staff of relevant overseas virtual currency exchanges, as well as legal persons, unincorporated organizations and natural persons who know or should know that they are engaged in virtual currency-related businesses and still provide them with services such as marketing promotion, payment and settlement, technical support, etc., they shall be investigated in accordance with the law. responsibility.

After the “94” policy in 2017, domestic exchanges have successively announced going overseas. But the so-called going to sea is to move the company registration place and server overseas.

The new regulations of the “9.24 Notice” are quite pertinent to the current status of my country’s currency circle, and it also proposes “physical supervision” for practitioners in the currency circle.

Therefore, after the latest policy was introduced, many exchanges and projects announced the suspension of registration of new users in mainland China. Among them, BHEX exchange announced the permanent closure of platform services. Huobi also released heavy news today (26th) that it plans to complete the withdrawal of existing users who are authenticated as mainland China by the end of 2021.

“Blockchain Daily” made a statistics based on public information. As of press time, 13 institutions have announced that they will withdraw from the Chinese mainland market.

Huobi announces the withdrawal of mainland users before the end of the year

On September 25, a reporter from the “Blockchain Daily” found out that the country/region selection for Huobi APP registration has been deleted from mainland China, and Taiwan and Hong Kong are still retained. It says “Currently we do not provide services for your country/region” when registering. But the old users who have already registered will not affect the use.

Huobi announced today (26th) that the registration of new users in mainland China was suspended on September 24th. For the existing users who are authenticated as Mainland China, it is planned to complete the orderly clearing and refunding before 24:00 on December 31, 2021, under the premise of ensuring the safety of user assets. The specific clearing and refunding rules will be announced through announcements, emails, and in-site letters. Notify users by SMS, etc.

According to a source from Huobi, a reporter from the “Blockchain Daily” revealed that, in fact, most of the middle and high-level members of the Huobi team are already overseas, and this time it is considered a nominal withdrawal from the mainland market. On September 26, Binance also suspended the registration of new users in mainland China. The country/region selection for its APP mobile phone registration has been deleted from mainland China, and it still retains Taiwan, Hong Kong, and Macau.

The relevant person of Binance Group responded to the reporter of “Blockchain Daily” that Chinese users have not been able to access the Binance website since 2017, and there is currently no exchange business in China.

The person further stated that Binance attaches great importance to compliance obligations and always insists on complying with the relevant requirements of local regulatory agencies no matter where it operates.

In addition to Huobi and Binance, many exchanges and projects have also expressed their views to close their services to mainland China. (The details are updated at the end of the article)

Liu Changyong, a think tank expert at Whale Platform and director of the Blockchain Research Center of Chongqing Technology and Business University, told the reporter of Blockchain Daily that after the ban on September 4, 2017, domestic exchanges were gradually closed for overseas registration and domestic development and operation after the short-term closure Pattern.

He further analyzed that after China completely banned virtual currency mining in the first half of the year based on the carbon peak and carbon neutral goals, the industry generally realized that virtual currency financial activities will face greater supervision, so relevant entities have started more Thorough measures to go to sea, relocate all registration, development, and operation to overseas.

On July 22, the “Blockchain Daily” reported that Beijing Huobi Tianxia Network Technology Co., Ltd. (Huobi Tianxia) decided to dissolve and intend to apply for deregistration with the company registration authority. Creditors are requested to report to the liquidation team within 45 days from the announcement date. Claims. It is reported that this institution is the main body registered in Beijing in the early years of Huobi.

On June 24, Xu Mingxing also planned to dissolve Beijing Lekuda Network Technology Co., Ltd. Lekuda was once the main operating entity of OKCion in China.

A reporter from “Blockchain Daily” interviewed OKEx Exchange on how to implement the “Notice on Further Preventing and Disposing of the Risks of Virtual Currency Trading Hype” on September 24. Like Binance’s statement, OKEx responded that there is no exchange business in China.

Regulatory escalation

my country’s new round of supervision of virtual currencies can be traced back to May 18 this year.

At that time, the three major industry associations of China Internet Finance Association, Bank of China (3.050, -0.02, -0.65%) Industry Association, and China Payment and Clearing Association issued the “Announcement on Preventing the Risk of Virtual Currency Transaction Hype”, requiring member institutions not to develop virtual currencies. Transaction exchange and other related financial businesses, resolutely resist illegal financial activities related to virtual currency, do not provide services such as accounts, payment settlement, publicity and display for virtual currency transactions, and remind the public to strengthen risk prevention awareness and refrain from participating in virtual currency-related transaction hype activities , Beware of damage to personal funds.

On May 21, the meeting of the Financial Committee of the State Council emphasized the need to resolutely prevent and control financial risks. Strengthen the supervision of platform enterprises’ financial activities. Crack down on Bitcoin mining and trading activities, and resolutely prevent individual risks from being transmitted to the social field.

On June 21, the relevant departments of the People’s Bank of China interviewed the Industrial and Commercial Bank of China (4.640, -0.02, -0.43%) and Agricultural Bank of China (2.940, -0.02, -0.68%) regarding the provision of services by banks and payment institutions for virtual currency transactions . , Construction Bank (5.930, -0.06, -1.00%), Postal Savings Bank (4.950, -0.05, -1.00%), Industrial Bank (17.920, -0.30, -1.65%) and Alipay (China) Network Technology Co., Ltd., etc. Some banks and payment institutions.

The central bank pointed out that virtual currency trading activities disrupt the normal economic and financial order, breed the risks of illegal cross-border transfer of assets, money laundering and other illegal and criminal activities, and seriously infringe the people’s property safety. All banks and payment institutions must strictly implement the “Notice on Preventing Bitcoin Risks” and “Announcement on Preventing Token Issuance Financing Risks” and other regulatory requirements, and earnestly fulfill their customer identification obligations, and must not provide account opening, registration, and registration for related activities. Products or services such as trading, clearing, and settlement.

After a lapse of 3 months, 10 ministries and commissions including the People’s Bank of China, the Central Cyberspace Administration of China, the Supreme People’s Court, the Supreme People’s Procuratorate, the Ministry of Industry and Information Technology, the Ministry of Public Security, the General Administration of Market Supervision, the China Banking Regulatory Commission, the China Securities Regulatory Commission, and the State Administration of Foreign Exchange have joined forces. Issue “924 Notice”. The 10 ministries and commissions this time surpassed the 7 ministries and commissions of the “94 Policy” in 2017, and three judicial organs, the Ministry of Public Security, the Supreme Procuratorate, and the Supreme Law, were newly added.

Li Ya, a partner of Zhongwen Law Firm, said in an interview with the “Blockchain Daily” that the 9.24 notice involved more senior departments including the Ministry of Public Security, the Supreme Procuratorate, and the Supreme Law, and defined two illegal actions related to virtual currency. Carrying out virtual currency exchange, market making, intermediary, pricing, tokens, derivatives and other related business activities are illegal financial activities; overseas exchanges provide services to domestic residents of my country, domestic staff of overseas exchanges, and business partners illegal financial activities .

Liu Changyong also analyzed to a reporter from the “Blockchain Daily” that the central bank followed the documents on December 5, 2013 and September 4, 2017, and the third regulatory document on virtual currencies. The general trend is increasing. The more severe, the more specific.

“The document gives clear guidance on the focus and specific methods of supervision in various fields, and it is very operative and will effectively crack down on domestic virtual currency financial activities.” Liu Changyong further explained, except for the previously prohibited exchanges and agencies In addition to currency issuance and mining, over-the-counter (OTC) and network services are also prohibited in order to completely cut off domestic financial activities related to virtual currencies.

However, a veteran in the currency circle confessed to a reporter from the “Blockchain Daily” that virtual currency trading, as a global financial activity, still has difficulties in monitoring it. On the one hand, over-the-counter transactions are difficult to monitor; on the other hand, regulatory upgrades have raised the threshold for entering virtual currencies. If virtual currencies cannot be used to deposit and withdraw in RMB, it is not ruled out that deposits and withdrawals will be the same as Hong Kong stocks and US stocks, which mainland residents hold. Overseas bank cards participate in transactions.

List of responses to “924 notice”

At present, many exchanges, institutions, and projects have responded to and implemented the “924 Notice.” “Blockchain Daily” has made statistics based on public statistics. As of press time, no less than 13 companies have announced restrictions on mainland users.

On September 24, the Ethereum mining pool Spark Mine Pool announced that in order to comply with China’s latest industry regulatory policies, Spark Mine Pool has decided not to provide mining pool services to users in mainland China. The specific shutdown plan for services in Mainland China will be announced in the near future.

On September 24, the graphics card mining machine management software NBMINER announced that it would no longer provide technical support services to users in mainland China and disband the QQ group.

On September 24, BiONE announced that it will be permanently shut down for maintenance at 24:00 (UTC+8) on September 29, 2021. Users must withdraw their currency to other exchanges or wallets before September 29, 2021. The platform is not responsible for the inability to withdraw the currency due to the overdue currency.

On September 24, the Futu Niu Niu App showed that in response to the regulatory requirements of the Hong Kong Securities Regulatory Commission, the following codes: GBTC, EHTE, ETCG, GDLC, OBTC, LTC N, BCH G will be forbidden to open new positions from October 1, 2021 For transactions, the closing of original positions will not be affected.

On September 25, TokenPocket stated that it will terminate some of the relevant functional services for inland users in China, and terminate services for third-party DApps that may be related to transactions and that do not comply with the “Notice” and other regulatory documents or laws and regulations. Keep the basic service functions of the wallet.

On September 25, BHEX announced that in response to regulatory requirements around the world and in compliance with the operational requirements of local cryptocurrency laws and regulations, BHEX Global Station will permanently close its platform services from now on. The platform will be closed on October 23, 2021. After the platform is closed, everyone can no longer log in to the platform’s website and App.

On September 26, Loopring Technology Limited (Loopring Technology) decided to stop providing Chinese users with all products and services related to virtual currency transactions. Specifically, it includes: no longer supporting Chinese users to place orders; no longer supporting Chinese users to use third-party applications related to transactions through Loopring Wallet. Relying on Loopring’s zkRollup expansion technology, users can still withdraw cash at any time. We will issue a new announcement as soon as the above measures are implemented.

On September 26, Binance suspended the registration of new users in mainland China.

On September 26, ZKSWAP decided to stop providing all virtual currency transactions and related products and services for Chinese IP users. Specifically, it no longer supports Chinese IP users to access websites and apps, and no longer supports Chinese IP users to use Swap and other products and services.

On September 26, the HyperDAO (HDAO) Foundation announced that it will no longer discuss virtual currency-related topics on Chinese social media, and will cease and withdraw from all mainland China businesses.

On September 26, Huobi issued an announcement stating that the registration of new users in mainland China was suspended on September 24. For the existing users who are authenticated as Mainland China, it is planned to complete the orderly clearing and refunding before 24:00 on December 31, 2021, under the premise of ensuring the safety of user assets. The specific clearing and refunding rules will be announced through announcements, emails, and in-site letters. Notify users by SMS, etc.

On September 26, the QKL123 (blockchain 123) website stopped serving users in mainland China.

On September 26 news, AEX Security Bank said that it had noticed the latest industry regulatory policies issued by mainland China’s regulatory agencies and will close registration and access rights in mainland China in the near future, and users in other countries will not be affected. However, AEX did not announce the specific time limit for Chinese users.


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