TL; DR Breakdown
- Binance announces its wishes to delist the Chinese Yuan by the end of the year.
- This step comes after the Chinese government rolls out stringent crypto regulations.
According to an announcement by Binance on October 13, it will be delisting the Chinese Yuan from its network on December 31, 2021. The exchange’s move comes after the strained regulation within the country concerning cryptocurrencies. The regulations in question force more crypto companies to exit the Chinese crypto industry and abandon their users in the country.
Binance is among the recent exchanges to decide on the same. It mentioned that Chinese users will only be able to withdraw on the platform. Keeping in mind that Binance is currently the largest exchange within China, it indicates a trend of what the crypto community can expect in the coming months.
In the same announcement, the exchange expressed holding crypto regulations to high standards. Moreover, it mentioned the cessation of all businesses with China’s mainland since 2017. The step will prevent any further strain with the Chinese government, further ensuring that it informs all users of the progression of its exit.
China’s ongoing crypto ban
China’s stand against crypto has been evident from the word go. Following its introduction of the digital Yuan in 2020, all regulations concerning crypto have been worsening.
Earlier this year, China announced the illegality of all crypto transactions, conducting a crackdown on virtual currencies. Crypto enthusiasts and prominent investors shunned this move, calling it a mistake the country would soon regret.
However, China is not backing down, making many wonder what will be next for cryptocurrencies and the digital Yuan. Furthermore, enthusiasts are also worried about how much damage the regulations will have on the community and crypto prices in general.
On the one hand, it might strain the cryptocurrency community as the country has a staggering number of crypto miners. Now, the US is on the top in terms of Bitcoin mining after China’s ban. Bitmain stopped all mining equipment shipping into the country, forcing most miners to consider overseas options.
Other exchanges will follow Binance
Binance’s exit from its Chinese user base is an indication that most crypto companies have given up on their future in China. Also, it raises the question of whether other countries will follow suit, potentially crippling a growing industry. So far, exchanges like Huobi and Coinbase are withdrawing their services from the land and might herald more exits soon.
Despite other countries like Bolivia banning crypto in the past, China stands as the harshest up to date. Companies shifting overseas is one aspect of dealing with the ongoing issue. All the same, it is a strain to lose their user base while considering the additional costs of relocating.
The exchanges in China have more to lose but will have broader acceptance in growing crypto hubs like Singapore. Nonetheless, the crypto community is waiting to see if there will be any comeback for virtual currencies despite the regulations crowding them.