Binance is implementing new limits on the Chinese mainland as part of its ongoing compliance with China’s cryptocurrency regulation. It was formally confirmed on Wednesday by the Binance cryptocurrency exchange that the Chinese currency, the Yuan (CNY) would be delisted out of its peer-to-peer trading system as of December 31st.
Additionally, in conjunction with discontinuing Yuan trading pairs, Binance will constrain accessibility to its platforms for users within mainland China, adding new steps for accounts that are deemed to be associated with the region. Binance will expressly restrict transactions from such accounts to “withdrawal only” mode, restricting operations to withdrawals, redemptions, and position closures.
Specifically, Binance noted that the company “withdrew from the Chinese mainland region in 2017” and has not been involved in the cryptocurrency exchange activities in the area since. Binance has stated that since the pullout, users in China were unable to use the cryptocurrency exchange’s services. The Binance crypto exchange has still not banned deals utilizing the Chinese national currency, even though it had previously exited the Chinese market in 2017.
“Binance does not conduct any active exchange operations in China.” According to a Binance spokeswoman, “we can verify that smartphone registration has been suspended and that the Binance application is not downloadable by Chinese consumers”. ” “In addition, we have taken the additional step of delisting CNY trading pairs and restricting operations on Binance P2P to all China-based users,” the spokesperson continued.
Another Crypto Ban In China
The announcement comes only a few weeks after the Chinese authority declared yet another big crypto prohibition in September, with numerous state officials joining forces to prevent cryptocurrency uptake in the country. Many prominent cryptocurrency companies have been compelled to shift or divert several of their services as a result of the situation.
Among the companies whose revenue is likely to be negatively affected by the new Chinese prohibition is Huobi, one of the world’s largest cryptocurrency exchanges. “For special purposes, we do have a component of our user community on the Chinese mainland,” explains the company. According to a company official on September 28, “It is expected that the termination of mainland Chinese registered users will have a brief effect on the overall revenue.” As the spokesman said, “Huobi’s varied operations outside of China have reached approximately 70% in terms of market capitalization.”
Bitmain Suspends Antminer Shipments To China
Bitmain intends to explore zero-emission mining prospects in Chinese provinces. Bitmain, a Chinese producer of crypto mining technology, has been compelled to cease operations in China as of October 11. In addition to China’s blanket prohibition on crypto activities, the company says it is responding to China’s carbon-neutral policy. “As of October 11, 2021, Antminer will no longer ship to mainland China,” Bitmain stated. “Our employees will approach long-term clients in mainland China to offer alternatives.”
Bitmain will keep supplying Antminer crypto mining devices to users worldwide, including Taiwan and Hong Kong. Bitmain has boosted manufacturing capacity for portable mining containers — Antbox — to counteract the Chinese market slump. A zero-emission mining opportunity mainly stemming from green power electricity production in Yunnan, Xinjiang, and other Chinese regions will be discussed at the World Cyber Mining Conference 2021 in November.
Bitcoin mining operations are recovering notwithstanding China’s recent crypto prohibition as Chinese miners and traders shift to favorable nations. Bitcoin’s hash frequency difficulty has risen 39% since late July. Bitcoin’s difficulty increased 4.71 percent on October 5 to a block level of approximately 703,000, showing the sixth straight rise since July 31.