In the wake of a new crypto ban by Chinese authorities, crypto exchanges are being prompted to leave the country to friendly regions. Domestic exchange, Huobi stated plans to also quit operations in China. In the latest statement by the exchange on the matter, Huobi has revealed plans to preserve investors assets until the deadline issued elapses.
Announcing the new development on Monday, Huobi group co-founder, Du Jun, revealed that Huobi intends to protect the assets of Chinese investors as part of its social responsibility. Huobi has stipulated 31st December 2021 as the deadline for investors to transfer their assets out of the platform. As soon as the deadline elapses, all accounts belonging to investors and traders in the region, the crypto exchange revealed.
Huobi Pledges Support for Embattled Investors
However, Du Jun noted that there is likely to be a communication gap between the exchange and Chinese investors as the ban continues. Notwithstanding, he pointed out that Huobi is working on other means to protect their investments or assets pending the time that they can move their assets out of the exchange.
Traders in China accounted for 30% of Huobi’s trading volume before the latest ban emerged. Yet, Huobi has witnessed an increase in adoption rate in the Southeast Asian and European regions in terms of sign-ups. Co-founder Jun asserted that the potential implications of China’s ban on its revenue is short-term and will fizzle out as Huobi’s business globally keeps growing.
Even as the regulatory pressure from China’s central bank, the PBOC and other regulatory agencies on crypto-related activities is fast rising, Du Jun pledged that Huobi will up the ante on its compliance with regulations and authorities globally.
Other Crypto Exchanges to Blacklist China
China’s latest ban received the force of law last week Friday and has given rise to a spate of decisions from other crypto exchanges to blacklist China in their market jurisdictions. An earlier ban on crypto mining in May created an upheaval in the global crypto community and crypto market, sending the price of Bitcoin and other cryptocurrencies spiralling downwards.
Until the May mining ban, China accounted for the largest share in the global Bitcoin mining hash rate, which according to previous estimates was 75%. Following the ban, miners in the region have continued to leave in droves, to other areas with support and friendly regulations for crypto mining.
The Asian giant has not hidden its distaste for cryptocurrencies, placing a series of bans starting from 2009. Its latest ban is reckoned as the 19th. The ban sparked sell-offs from some unwitting investors, and also led Bitcoin and other cryptocurrencies to shed some percentages off of their prices.
Experts passed off the ban as Fear, Uncertainty, Doubt (FUD) given the number of times China has banned cryptocurrencies. Meanwhile, China’s central bank digital currency (CBDC), the digital Yuan, is nearing general issuance and will serve as an alternative to prohibited digital currencies.