Huobi and OKEx have restricted Chinese citizens from accessing cryptocurrency trading and mining services on their platforms ahead of the looming ban by the Chinese government.
The Chinese government announced a few days ago that it would crack down on Bitcoin mining and trading. The move is already having an effect on the market, with some cryptocurrency exchanges blocking Chinese traders and miners from accessing their platforms.
Crypto exchanges Huobi and OKEx have restricted Chinese citizens from accessing some services on their platforms. Huobi revealed that it has temporarily ceased crypto derivatives trading for traders in certain countries. According to the crypto exchange, the move is to protect the interests of the investors.
Although the spokesperson didn’t reveal that China is one of the countries to face such restrictions, the recent announcement by the Chinese government makes it tough for exchanges to offer trading and mining services to Chinese citizens.
According to Chinese blockchain journalist Colin Wu, Bitcoin miners will be removed from Huobi. However, Huobi’s mining pool service is currently unaffected.
Huobi Pool stated that it will stop providing services to Chinese users. Those who have already purchased Bitcoin mining machines will be removed from the shelves, a interesting thing is that Huobi said that FIL mining machines will not be affected. pic.twitter.com/B62PII7pmB
— Wu Blockchain (@WuBlockchain) May 23, 2021
Huobi isn’t the only cryptocurrency exchange that is restricting Chinese traders from accessing its platform. A spokesperson from OKEx revealed that the exchange would temporarily delist its token, OKB, for Chinese users on its P2P platform starting today. However, the spokesperson didn’t provide any specific reason for the move.
Huobi and OKEx previously had their headquarters in China but had to relocate following the ban on cryptocurrency exchanges in 2017. Despite that, they continued providing services to Chinese traders.
The Chinese government has been tough on the cryptocurrency space in recent years. Last week, three major payments associations in the country—the National Internet Finance Association of China, the China Banking Association, and the Payment and Clearing Association of China said Chinese banks and payment companies are not allowed to provide financial services to individuals and businesses involved in cryptocurrencies.
The body also warned citizens against cryptocurrency trading, calling it a speculative market with no real value. This was followed by the news that China intends to ban cryptocurrency mining operations in the country.