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Binance to end Chinese yuan trading from its C2C platform

October 14, 2021 1:08 am

Binance, one of the world’s largest cryptocurrency exchanges, said it will stop supporting the Chinese currency on its consumer-to-consumer (C2C) platform after Chinese regulators vowed to root out all cryptocurrency-related transactions that are considered to be illegal financial activity.

Detail:  

Binance said in a Wednesday statement that it will halt offering the Chinese yuan section of its consumer-to-consumer service after Dec.31 this year, mainland Chinese users will have their accounts switched to “withdrawal only” mode that would be allowed only to withdraw or close their positions.  

Though Binance established in China, it exited from mainland China in 2017 after shutting down all of its operation in the country and said it does not engage in any business on the mainland.  

The previous crackdown has forced a slew of companies including crypto exchanges and miners to cease operation and leave the country.  

OKEX, another major cryptocurrency exchange with its origins in China had shifted its core business to international markets since 2017.  

Context:

Last month, China’s most powerful regulators, including the central bank, financial, securities and foreign exchange regulators, said they will work together to root out all crypto-related transactions illicit and singled out overseas exchange.  

The announcement of Chinese regulators is the country’s latest efforts to crackdown cryptocurrency trading after Beijing banned banks and financial institutions from offering crypto-related service to users and asking them to cut payment links.

However, individuals in the country have continued to find ways trade cryptocurrencies with over-the-counter or peer-to-peer transactions. Beijing’s latest ban on crypto transactions and services offered by overseas exchanges targeted these loopholes.  

Huobi, a rival crypto exchange that was also founded in China, said last month that it would stop letting mainland Chinese to register new accounts and close all user accounts in mainland China by the end of the year.