Binance, the biggest cryptocurrency exchange in terms of volume traded and the most contentious in recent months, is enacting new limitations in mainland China to comply with the country’s crackdown on cryptocurrencies. Binance also stated that it has denied access to its platform to users in China. Accounts connected to the crypto exchange will be in ‘withdrawal only’ status, allowing users to only withdraw, redeem, and close positions.
Last month, the Chinese government issued another significant crypto prohibition, and various state agencies joined forces to fight the country’s growing use of cryptocurrencies. According to the statement, “In accordance to the regulatory requirements of the local government, Binance C2C will delist the CNY trading zone at 24:00 (East Eighth District Time) on December 31, 2021.”
Simultaneously, Binance will perform a user inventory. By default, when the platform detects users in mainland China, their accounts will be set to “Withdrawal Only” status and they cannot do anything else. Seven days before the account transfer, Binance will contact the relevant users to let them know about the change.
Several significant crypto companies, including those that provide services and mine cryptocurrencies, have had to move or divert part of their operations due to China’s crypto legislation. Another major cryptocurrency exchange, Huobi, has also been hit by suspension. Huobi is one of the world’s biggest exchanges.