Two days after the central bank and other 10 departments upgraded their virtual currency trading rectifications, some cryptocurrency exchanges made business adjustments. On the afternoon of September 26, the cryptocurrency exchange Huobi issued the “Announcement on the Gradual and Orderly Clearance of Existing Users in Mainland China” on its official website, stating that Huobi Global will authenticate the identity of existing users in Mainland China, and it plans to start in 2021. Before 24:00 on December 31, 2016, complete the orderly clearance and withdrawal under the premise of ensuring the safety of user assets.
The announcement also stated that Huobi Global has suspended the registration of new users in mainland China on September 24. This business adjustment may be related to the overall upgrade of China’s virtual currency regulatory policy two days ago.
On September 24, 10 departments including the People’s Bank of China issued the “Notice on Further Preventing and Disposing of the Risks of Virtual Currency Trading Hype”, clarifying that overseas virtual currency exchanges providing services to Chinese residents through the Internet are also classified as illegal financial activities.
On the same day, 11 departments including the National Development and Reform Commission issued a document prohibiting new virtual currency “mining” projects and speeding up the orderly exit of existing projects. At the same time, virtual currency “mining” activities will also be officially classified as an obsolete industry.
On May 21, the Financial Stability and Development Committee of the State Council clearly stated that it would crack down on Bitcoin mining and trading and resolutely prevent individual risks from being transmitted to the social field. As a result, a new round of rectification activities for virtual currency mining and trading began quickly.
In this context, cryptocurrency exchanges have made many business adjustments. On May 23, Huobi’s mining machine mall decided to suspend the provision of related services for users in mainland China. One day later, Huobi announced that it would temporarily not open contracts, leverage and other services to new users in some countries and regions.
On July 22, Beijing Huobi Tianxia Network Technology Co., Ltd. was dissolved due to a resolution and planned to apply to the company registration authority for deregistration. Creditors shall declare their claims to the liquidation team within 45 days from the date of the announcement. Li Lin. At that time, Huobi responded to The Paper reporters that this institution was the entity registered in Beijing in the early years of Huobi, not the operating entity of Huobi Global. The entity applied for cancellation because it did not carry out any business and did not need to continue to exist.
Huobi used to be one of the three largest cryptocurrency exchanges in China. On September 4, 2017, seven ministries and commissions including the People’s Bank of China issued the “Announcement on Preventing Token Issuance Financing Risks”, requiring that China’s domestic financing of tokens and virtual currency transactions be fully cleaned up and rectified, and Huobi withdrew from the Chinese market. . However, although Huobi Global’s operating entity is overseas, domestic investors can still conduct virtual currency transactions through the platform.
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