Huobi stated that mainland Chinese investors could no longer open accounts. Current Chinese clients’ accounts will be closed by December 31.
Huobi’s limitations come after the Chinese central bank banned virtual currency trading earlier this week.
The People’s Bank of China has previously banned crypto trading. Still, its most recent announcements are the clearest indication yet that the government intends to eliminate speculative crypto trading.
However, the market had more than recovered within a few hours. Bitcoin, the most valuable cryptocurrency by market capitalization, rose 8% in less than two hours today, reaching highs of $44,229 before falling to its current price of $43,255.
Huobi sent 22,000 Bitcoin, or about $1 billion, to an unknown wallet earlier today. Colin Wu, a Chinese crypto writer, anticipated that this would be “the shift of cold wallets to hot wallets to meet the demand for withdrawals.”
Binance and OKEx both stated that Chinese consumers have been unable to utilize the exchange since 2017.
Chinese crypto consumers are primarily connected with exchanges using VPNs, and offshore OTC desks. However stricter identification checks and a central bank crackdown have made these options less viable.