Huobi officially announced the termination of China’s user registrations
The fact is that, contrary to previous statements, on this occasion the Chinese authorities have made their message as direct and unequivocal as possible to demonstrate the seriousness of their intentions regarding digital assets. It is noteworthy that even after such actions, the words of the Chinese government would hardly have been taken seriously if, immediately after, one of the leading global cryptocurrency exchanges, Huobi, which, incidentally, was founded in this country, did not stop the registration of new users. Huobi has stopped registering new users with phone numbers from mainland China.
In this regard, if previously it could be attributed to technical problems, while today, September 26, the company officially announced that all accounts of all Chinese users will be deleted by the end of this year.
According to Bloomberg, the seriousness of the Chinese government’s intentions was confirmed by Anri Arslanyan, director of one of the world’s most famous audit firms, PricewaterhouseCoopers (PwC), in the field of cryptocurrencies, on her Twitter. He noted that this time there would be no leniency for cryptocurrencies and this was by no means discussed.
By banning the use of cryptocurrencies, the People’s Bank of China along with nine other institutions, including the Supreme Court, police, and securities security services, also closed a pre-existing loophole that had allowed citizens to maintain accounts on offshore exchanges such as Huobi. In addition, the Chinese authorities have prohibited any foreign platform from hiring employees from that country for operations such as marketing, technology and the financial system, which also limits the ability of cryptocurrency exchanges to serve Chinese customers.
In addition to all of the above, Chinese regulators have reported that Bitcoin (BTC), Ethereum (ETH), and any other crypto asset cannot be equated with fiat currencies. Also, it was not about the digital yuan in the bans.
Chinese government resumes hunting for miners
Finally, the Chinese authorities have begun to actively monitor incidents of abnormal power consumption, which is necessary to track down illegal miners and accelerate the shutdown of previously banned mining in China.
According to statistics, after the authorities declared mining illegal, the people who had been involved in it left the country in a hurry and the computing power of the network dropped by 46%, which is roughly equivalent to the power consumed by Chinese miners.
However, at the beginning of the summer, this indicator began to rise and quickly returned to its previous values. This means that the Chinese miners have returned to work, even though they are in other countries. However, it also means that some of them have gone underground, and it is against them that the actions of the Chinese government are directed.
Cryptocurrencies are almost completely banned in China
For now, all Chinese residents can do with the cryptocurrency is simply store it, as the authorities have yet to outlaw this opportunity. However, even in this situation, not everyone is sure that the authorities can ban cryptocurrencies completely. For example, Bobby Lee, founder of crypto storage company Ballet, said that people can still conduct private transactions with each other.
However, at present these transactions do not enjoy legal protection, that is, in case of dispute over said transaction or fraud using digital assets, the case will not be concluded.
While some skeptics still believe such bans will get you nowhere, others await further action. Therefore, PwC’s Arslanian is no longer sure that even the current state of cryptocurrencies as personal property will suffer in the near future.
Henri also pointed out that Chinese users of digital assets should seek out new cryptocurrency exchanges if the most famous ones follow Huobi and Binance’s lead and prohibit Chinese users from creating accounts. The head of PwC’s crypto department added that he would be interested to know how far cryptocurrency supporters in China would go to circumvent these restrictions. After all, it is very difficult to restrict the trading of such assets given the privacy they offer to their customers.
Time will show what results the Chinese authorities will get in their efforts to ban cryptocurrencies. Meanwhile, it is evident that the inhabitants of the Celestial Empire have already begun to feel discomfort and the limitations that make it difficult to work with digital assets.