Exchange News

KuCoin exchange set to halt service in China gives users ultimatum to close positions

TL;DR Breakdown

  • KuCoin exchange set to exit China.
  • It is not the first time KuCoin exchange would announce its China exit.
  • STICPAY executive predicts china crackdown would open international opportunities in crypto sector.

KuCoin exchange is the latest firm to reflect the heat of the intensified crypto ban in China. The exchange firm has announced in a press release on Sunday that all users should withdraw all their funds and close their accounts by the end of the year.

The exchange firm was explicit in its use of words stating that the decision was prompted by the recent and intensified crackdown on crypto by the Chinese government.

Back and forth on KuCoin exchange exit

Before now, KuCoin exchange had quit China in 2017 after a similar crackdown on crypto in the country. KuCoin said it had finished removing Chinese users by early October 2017.

After the People’s Bank of China intensified crackdown on crypto again last week that the apex bank said cryptocurrency speculation breeds illegal activities that “seriously endanger the safety of people’s property.”

KuCoin exchange conducted a technical self-inspection to ensure that it complied with the regulatory requirements of mainland China. However, it found out that some Chinese stragglers existed on its platform. The exchange then recommended ‘relevant users’ to move their assets off the platform by December 31.

KuCoin becomes latest crypto firm to announce China exit

The announcement makes the exchange firm the latest to announce its exit from China after the continued crackdown.

KuCoin which has 8 million users traded $1.7 billion worth of crypto in the past 24 hours (CoinMarketCap). It ranks among the top crypto exchange around.

Last week, the exchange that announced its exit from China was Huobi noting that Chinese mainlanders couldn’t sign up for new accounts, and existing Chinese customers would lose access to their accounts by December 31.

Beyond exchanges, other crypto firms (mining pool, analytics provider, etc) have been shutting down in China following the crypto crackdown.

Expert opinion on China’s crypto position

James Bay, Customer Service Director at STICPAY in a press release stated that China’s position on crypto is not new and it is not the first time the country imposed restrictions on crypto.

He, however, said that the crackdown would open-up new opportunities for international players in the crypto sector.

“China is one of the world’s largest cryptocurrency markets. This is not the first time it has imposed restrictions on crypto and it is unlikely to be the last. In view of this some crypto businesses will need to find partnerships outside China. Other countries might follow China’s example, which could impact the prospects of crypto, while opening new opportunities for international players, such as bitcoin mining companies, blockchain projects, crypto exchanges, and institutional investors.

“In recent years there have been several countries that have succeeded in regulating cryptocurrencies, including Canada, Germany, Japan, and S. Korea. At the same time, we are seeing cryptocurrencies becoming more and more mainstream as global platforms such as PayPal, Twitter and STICPAY now accept them.

“Cryptocurrency markets are volatile, and governments, regulators and investors have different attitudes towards them. That makes it crucial for investors to hold their money in an e-wallet, like STICPAY, that supports both crypto and fiat, to secure their funds.”

This post was last modified on October 3, 2021 10:41 pm

Muhaimin Olowoporoku

Muhaimin loves writing on crypto news aside from being a crypto enthusiast. He has a knack for analysing issues and updating people on what's happening around the globe. He believes that blockchain and cryptocurrency are the most useful systems of mutual trust ever devised.

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