Hours before China issued its sweeping ultimatum against cryptocurrency trading, the industry’s last remaining giant player had already decided to call it quits.
Huobi founders and backers voted unanimously at their shareholder meeting Sept. 24 that the crypto exchange, China’s largest, should leave its home market after years of growing government scrutiny. Later that day, Chinese regulators declared that all crypto transactions and services were banned in the country.
Huobi ceased account registration for new users in mainland China almost immediately and announced two days later that it would remove existing Chinese users by the end of this year. The moves -- which were quickly followed by a slew of smaller crypto outfits -- are the strongest testament yet to Beijing’s determination to ban crypto, despite years of attempted crackdowns with mixed effects.
“In the past, we had been communicating with regulators to see if there are still ways to legally operate in China. But this time, there’s no room for discussion.” co-founder Du Jun said in an interview with Bloomberg. “Our strategy is all about going global now.”
Beijing’s latest crypto ban eliminates false hope for the likes of Huobi to stay put in China by tiptoeing around the red lines. One of the last China-founded crypto platforms that hewed closely to its home country, Huobi has over the years developed rare, cozy government ties that rivals could only envy. But the exchange giant has been preparing for life without China since the start of this year, said Du. While investors like Sequoia China and ZhenFund had nodded to the original plan to shut all Chinese user accounts by June of next year, he said, the surprise official statement accelerated that effort.
“We are actively sticking to the government policy so we want to solve the matter this year,” Du said, adding that the exchange will keep regulators updated on progress.
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October 05, 2021 at 12:48PM
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China Crypto Exchange Huobi Decided to Quit Country Before Ban - Bloomberg
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