Home
News
- China banned cryptocurrencies back in September, but the effects emerged slowly, weeks and months later. The most badly affected bodies include businesses dealing in crypto, investors, and crypto exchange platforms.
- Many crypto exchange platforms worked to obey the ban. Some removed a lot of features from the platform, while others restricted access for mainland Chinese users.
- Exchange shares of global open interest were also affected, falling from 6% to 2%. OKEx saw a down from 30% to 8%.
The relation of China with Bitcoin hasn’t been the smoothest. Earlier, China took some steps to eliminate all the bitcoin mining activity from the country, which resulted in the hash rate crashing. The battle continued on the same and now had finally landed on the decision of banning cryptocurrencies altogether, in September, when it was declared illegal.
Effects From The Ban in China
Since the ban, several cryptocurrency exchange platforms have constantly taken measures to obey the country’s cryptocurrency ban. The ban affected many in several ways, including affecting businesses that deal in Bitcoin or with Bitcoin. But, investors are the ones that were affected the most and worse as all trading movements of cryptocurrency were simultaneously restricted throughout the country.
The ban’s effects could be seen reflected from the crypto exchange platforms that function in the national regions. The exchanges were bound to eliminate numerous features for users in China and are expected to be further affected soon.
ALSO READ – PWC Hong Kong Ventures into Metaverse
Crypto Exchanges Affected Badly
OKEx & Huobi are crypto exchanges that have been affected badly. These exchanges served a great market and were quite crucial for Bitcoin’s growth. Both exchanges were bound to stop trading for users from China. The exchanges faced loss, too, they observed a reducing share of the market as they moved towards eliminating Chinese users.
The ban took place in September, but its effects surfaced months later. Houbi Global, the leading crypto exchange, began rolling back access from its China-based users. The crypto exchange also explained its plans to restrict new land China users from the platform. For users from the region, no new accounts have been set up.
The platform, for Chinese users, closed its derivatives desk in November. The affected exchanges also influenced the exchange’s shares of global open interest to drop, going from 6% to 2%. Spot trading was the only option for the users of that region, also, Huobi recently announced that it would be repealed, and that would leave all the customers with the only option to sell their cryptocurrencies.
OKEx also made announcements concerning restricting service for users in the region and restricting access for mainland China users, as done by Huobi. This move was a sequential move to get out of the markets of the Chinese mainland. OKEx also recorded a major down in its shares of global interests due to the move, shifting down from 30% in 2020 to 8%. But still, the exchange has somehow managed to maintain a stable market share in the futures market, ever since the ban was announced.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while pursuing his post-graduation major in blockchain development. He is a keen observer of details and shares his passion for writing, along with coding. His backend knowledge about blockchain helps him give a unique perspective to his writing skills, and a reliable craft at explaining the concepts such as blockchain programming, languages and token minting. He also frequently shares technical details and performance indicators of ICOs and IDOs.
