On Wednesday, the Binance cryptocurrency exchange announced that the Chinese yuan (CNY) will be delisted from its peer-to-peer trading platform on December 31.
Binance will continue to limit access to its platform for users from mainland China. Adopting additional restrictions for accounts related to the area, in addition to discontinuing yuan trading pairings. Binance will set such accounts to “withdrawal only” status, limiting transactions to withdrawals, redemptions, and position closure.
The exchange said it “withdrew from the Chinese mainland market in 2017”. And hasn’t done any exchange business in the area since. China-based users have been unable to access Binance since the leave, according to the exchange.
Despite quitting the Chinese market in 2017, Binance has not yet stopped accepting trading in the Chinese yuan.
“Binance does not currently operate any exchange activities in China”. “We can also confirm that the exchange prohibited mobile phone registrations. And that the Binance app is not accessible for download by Chinese customers”, a Binance representative said.
“We’ve also taken the further step of delisting CNY trading pairs and restricting Binance P2P services to any China-based customers,” the spokesperson continued.
Chinese authorities banding together to battle crypto adoption
The revelation comes just weeks after the Chinese government declared yet another big crypto ban in late September, with several state authorities banding together to battle cryptocurrency adoption in the nation. Several big crypto companies have had to move or divert part of their services.
One of the world’s major cryptocurrency exchanges, Huobi, is one of the companies whose revenue is foreseeable to be impacted by China’s new prohibition.
“We do have a percentage of our user base in mainland China because of historical reasons”. The retirement of mainland Chinese user accounts would impact Huobi’s income in the short term, according to a spokesman on Sept. 28.
“In terms of trade volumes, Huobi’s diverse operations outside of China have reached over 70%,” the spokesperson continued.