Huobi Suspends Mainland China Mining Services After Financial Committee Meeting Proposes Crackdown on Bitcoin Mining

Cryptocurrency exchanges may start adjusting their business after the State Council’s Financial Commission proposed a crackdown on bitcoin mining and trading practices.

On May 23, a screenshot circulated online showed that the small customer service of Huobi’s Firecoin Mall, a cryptocurrency exchange, sent a message saying that in order to cooperate with the latest industry regulation policy in China, the mall decided to suspend mining machines and derivative services for users within mainland China. For users who have purchased BTC mining products (including “mining machine + hosting”, “one-stop” and “worry-free mining”), the hosting service for mining machines will be suspended and the machines will be taken offline from today (23rd). The machines will be taken offline from today (23rd).

Huobi Suspends Mainland China Mining Services After Financial Committee Meeting Proposes Crackdown on Bitcoin Mining

The screenshot of Huobi’s suspension of mainland mining services circulated online

In this regard, Huobi responded to the surging news that since this year, the pace of globalization of mining machine mall business is increasing, in order to focus on expanding overseas business, mining machine mall decided to suspend the relevant services for users in mainland China. The solution for mining machines held by old users will be subsequently notified to customers.

“It was a very small thing, but it was probably magnified in this time frame,” said an industry source close to Huobi, “It was just a community thing, and then it was caught and magnified infinitely.”

Huobi was once one of the top three domestic digital currency exchanges, and according to its official website, Huobi Global Station is a Bitcoin trading platform that provides real-time price charts for multiple coins such as Bitcoin, Litecoin and Ether, and provides digital asset trading and asset management services to tens of millions of users in over 130 countries worldwide.

Recently, China’s regulators have been “hitting hard” on the burgeoning cryptocurrency market due to the recent surge in virtual currency prices, the rebound in virtual currency trading hype, and the energy consumption of the bitcoin mining industry.

On May 18, the Internet Finance Association of China, the China Banking Association and the China Payment Clearing Association jointly issued an announcement, reiterating that conducting exchange business between legal tender and virtual currency and between virtual currency, trading virtual currency as a central counterparty, providing information intermediary and pricing services for virtual currency transactions, financing token issuance and trading virtual currency derivatives and other related trading activities violate relevant laws and regulations and are suspected of illegal fund raising, illegal issuance of securities, illegal offering of tokens and other criminal activities.

On the same day, the Development and Reform Commission of Inner Mongolia Autonomous Region issued a notice announcing the establishment of a reporting platform for virtual currency “mining” enterprises.

Three days later, on May 21, the Financial Committee of the State Council held its 51st meeting, which called for resolute prevention and control of financial risks, crackdown on bitcoin mining and trading, and resolute prevention of individual risk transmission to the social sector.

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