Okex and Huobi restricted the Chinese customers from their platforms because of the latest government crackdowns and one of them even paused trading for some coins in China as we can see in our latest cryptocurrency news.
Okex and Huobi will stop providing services for Chinese customers and Huobi will even stop selling mining machines and custody services to the Chinese customers. OKEx will stop trading for its OKB coin in China. A few days after the government vowed to crack down on BTC mining and trading, exchanges Okex and Huobi started blocking Chinese customers from accessing their services.
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 explained that it temporarily stopped crypto derivatives trading for customers in markets to protect the interests of investors due to recent dynamic changes in the market. While the spokesperson of the exchange didn’t mention that the exchange stopped derivatives trading in China, the country is the only place where traders reported issues. The spokesperson added that the Huobi Pool prevented Chinese customers from purchasing and storing miners and said that the limitations will focus on the expansion of the overseas presence.
Blockchain journalist Colin Wu said that the miners will be removed from the shelves and the mining pool of Huobi itself won’t be affected. Another spokesperson for Okex said that it will temporarily delist the OKB token for all Chinese users but nothing more was said about it. OKB dropped by 67% over the past week and the Huobi Token dropped by 63% in the past week as well to $11.5. Both of the exchanges left China after the government banned the exchanges in 2017 but there was still a huge customer base in China left and parent companies that operate outside of the country as well.
The restrictions came after two major developments in China, both of which pushed the market into freefall. Three major payment associations in China reconfirmed their stance on regulation from 2017 that prevents financial institutions to deal with crypto and even issued warnings against crypto speculation. After the news emerged, BTC Dropped to lows of $30,000 and the damage was greater when the government of China said it needed to crack down on mining and prevent financial risks.