Changpeng Zhao, CEO of Binance.
  • Binance will stop trading the Chinese yuan on December 31, he said on Wednesday.
  • The crypto exchange said it will perform checks to ensure that mainland Chinese users can only make withdrawals.
  • Binance says it has been stuck in China since 2017 and does not engage in local trading.
  • Sign up for our daily newsletter here, 10 things before the opening bell.

Binance will end the use of the Chinese yuan on its peer-to-peer platform, in the crypto exchange’s latest move to cooperate with regulators in China.

The company, which is one of the largest exchanges in the world, is expected to stop supporting the Chinese currency on December 31 of this year, it said in a statement on Wednesday.

Binance added that people in mainland China will only be allowed to make withdrawals, redeem or close positions.

“At the same time, Binance will take an inventory of platform users,” the crypto exchange said. “If the platform finds users in mainland China, their corresponding accounts will be switched to ‘checkout only’ mode.”

Affected users will be notified of the withdrawal restriction by email seven days prior to the transition.

At the end of September, Chinese authorities declared all crypto-related transactions illegal and banned foreign exchanges from providing services to residents of the country. Almost immediately, Binance said it would no longer accept registrations linked to Chinese mobile phone numbers.

Chinese crypto exchange Huobi has also said it will stop new user registrations by customers on the mainland and remove existing accounts by the end of this year. Two other Asian-focused crypto exchanges, Matrixport and Mexc, also follow by cutting off existing users.

Beijing’s recent hostile stance on crypto came as no surprise, after authorities imposed their first related “ban” in 2013.

Since then, China has attempted to stifle the digital asset sector through various restrictions that target a range of market segments. In 2017, local crypto exchanges were ordered to end operations.

A Binance spokesperson told Insider that the crypto exchange has been blocked in China since 2017 and local users have not been able to access its website.

“Binance does not currently conduct any foreign exchange transactions in China,” the spokesperson said, adding that the company takes its compliance obligations “very seriously”.

News of crypto-related bans from China has not impacted the rate of cryptocurrency adoption, according to Freddie Williams, a trader at UK-based digital asset broker GlobalBlock .

“That hasn’t stopped the adoption of bitcoin and digital assets from continuing their upward trend,” Williams said.

Read more: Founders of $ 130 Million Crypto Hedge Fund Break Down Their 5 Trading Strategies – And Share Undervalued Altcoin With Incredible Rise Due To ‘Huge Demand’ For It

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