Chinese bitcoin exchanges Huobi and OKCoin – two of the country's "Big
Three" markets – have announced that they will halt yuan-denominated
trading by the end of October.
The twin statements indicate
that, at least for now, the exchanges will continue to offer
cryptocurrency-to-cryptocurrency trading services. That said, both
exchanges are halting yuan deposits starting today.
According to Huobi and OKCoin, definitive information about the trading
suspension will be circulated to users before September 30. More
significantly, the exchanges will undertake a "gradual" process of
unwinding its yuan-denominated markets, with an eye to complete that
process by October 31.
The news comes after fellow China-based exchanges BTCC, ViaBTC and Yunbi
all announced that they would shut their doors, citing statements from
domestic regulators earlier this month. In the wake of BTCC's closure
yesterday, both Huobi and OKCoin said that they had not received any
notices or instructions to close.
Yet this morning, leaked documents
indicated that verbal directives had been given to some exchanges
regarding their closure. Notably among those instructions was the
stipulation that user data be preserved and provided to the government.
Cryptocurrency prices, in turn, saw continued turmoil in the wake of those developments.
The move to halt yuan-to-crypto trading represents a new phase in the ongoing saga around cryptocurrency regulation in China.
Earlier this month, China put a freeze on its domestic initial coin offering (ICO) space, declaring
it an illegal form of fundraising. Exchanges and other websites
providing ICO-related services subsequently moved to accommodate the new
rules amidst the fallout, with investors in previously held ICOs set to be refunded their money.
That move came months after regulators in China moved to impose new
anti-money laundering restrictions on the country's exchanges. In early
2017, the People's Bank of China made waves when it was revealed that
officials had met with the leaders of the country's major bitcoin
exchanges, followed by meetings with other representatives of the ecosystem and a months-long withdrawal freeze amid the upgrades.
Dragon silhouette image via Shutterstock
Disclaimer: This
article should not be taken as, and is not intended to provide,
investment advice. Please conduct your own thorough research before
investing in any cryptocurrency.
SOURCE https://www.coindesk.com/huobi-okcoin-s ... obers-end/
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