Binance is suspending Chinese Yuan trading and restricting access for users from China

Binance is suspending Chinese Yuan trading and restricting access for users from China

To comply with local regulations, Binance has announced that it will no longer serve OTC Yuan transactions for Chinese users starting December 31, 2021. Shortly after the declaration, the price of BTC and most of the market fell.

On an October 13th post, Binance said it will suspend OTC trading for the Chinese yuan as of December 31 at midnight (East Eighth District Time). The company will also investigate all platform users and if it finds that any of them are based in mainland China, it will switch their accounts to a “withdrawal only” mode. This means they can only close positions and withdraw their funds from the exchange. Binance based its decision on the ongoing crackdown by Chinese authorities against the cryptocurrency industry. The country and its central bank took their hostile stance one step further this year and in September 2021 banned all local organizations from dealing with companies even remotely related to the digital assets space. As a result, over 20 companies were forced to close their local operations, including other major exchanges such as KuCoin and Huobi. According to popular Chinese journalist Colin Wu, the most used social media platform in China – WeChat – has also started blocking searches for digital asset trading platforms. Wu tweeted that “almost all websites and apps in China have blocked or will block the exchange.” As with the previous iteration of the Chinese ban, some decentralized exchanges' tokens rose quickly following today's announcement from Binance, Wu added. At the same time, most of the cryptocurrency market is in red. Bitcoin was trading above $56,500 before a sudden violent candle pushed it south by around $2,000. So far, BTC has settled around $55,000.

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