Home News Huobi outlines plan for Chinese investors after halting crypto trading

Huobi outlines plan for Chinese investors after halting crypto trading

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Huobi outlines a plan for Chinese investors after halting crypto trading. As domestic crypto exchanges like Huobi take aggressive efforts to preserve and refund existing money resident on the mainland, the worries generated by China’s blanket ban on crypto trading have subsided.

Huobi Group co-founder Du Jun stated that as part of its social duty, the crypto exchange aims to safeguard the safety of its consumers’ money.

“Over the following several months, customers will be able to move their holdings to other exchanges or wallets. In future announcements, The exchange will outline specific procedures and operational norms.”

The crypto exchange is also working on alternative measures to secure client funds until they can move them to offshore exchanges or wallets, citing the risk of a communication gap with Chinese investors due to the ban.

Prior to the cryptocurrency prohibition, Chinese investors accounted for more than 30% of trading volumes. But Huobi has witnessed growing adoption in Southeast Asian and European markets, as Jun clarifies. “Any short-term impact on Huobi revenues will be offset as our worldwide business continues to grow”, the exchange predicts.

Notably, the People’s Bank of China’s and other Chinese regulatory agencies’ bans on crypto transactions and mining. Nonetheless, Jun aims to ramp up Huobi’s compliance efforts and continue to establish compliant operations on a worldwide scale.

Halting new clients

Soon after a new crypto ban went into force on Friday, mainland Chinese crypto exchanges, including Huobi, began halting new client registrations. Huobi later declared that all mainland Chinese accounts would be terminated by 24:00 UTC+8 on December 31, 2021.

The majority of Bitcoin (BTC) mining has historically taken place in China. However, Chinese miners have continued to relocate off-shore into crypto-friendly countries due to the lack of backing from the ruling authorities.

It is the 19th attempt in 12 years

According to a recent study, this is the Chinese government’s 19th attempt in the last 12 years to regulate cryptocurrencies. While China’s move to prohibit crypto trading led some naïve investors to panic-sell, Bitcoin’s price continues to exhibit positive indications. Thanks to proactive support from crypto exchanges and users throughout the world.

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