More than 20 Chinese crypto companies are leaving the country after the local ban

More than 20 Chinese crypto companies are leaving the country after the local ban

Over 20 Chinese digital asset-related companies announced that they will cease operations and withdraw from the local market as the country continues its hostile stance towards all things crypto.

The impact of China's crypto ban

China's negative attitude towards the cryptocurrency industry has been known for years and local authorities tend to remind investors of this frequently. At the end of September, the country's central bank published a document stating that trading and mining of digital assets is prohibited within Chinese borders. It also banned people from working with such exchanges.

Shortly after, many crypto-related companies began shutting down their businesses. According to the China Securities Journal, the number of these companies is stands with more than 20 as they stop providing services and move abroad.

Speaking of such organizations: it is worth noting that the tightened ban caused the main trading venue – Huobi – to suspend the registration of new users from China. A few days later, one of the largest Bitcoin pools – Huobi Poll – stirred over $4 billion in BTC from miners. This was the largest inflow of funds since December 18, 2017.

The Chinese raid reached Spark pool too. The second largest ETH mining pool announced last week that it had suspended access to new users in mainland China and suspended all of its services as of September 30th.

To make matters worse, the Chinese government confiscated Mining equipment in northern Inner Mongolia province, marking the 45th such seizure in that province.

BTC is getting stronger after the Chinese bans

Although the government of the most populous nation has redoubled its efforts to stop all possible cryptocurrency operations within its borders, Bitcoin has ultimately withstood the attacks. In fact, at the time of writing, the asset's price is around $54,500, up about 25% since the People's Bank of China's recent ban.

Popular whistleblower Edward Snowden recently divided also his thoughts on it. According to him, Chinese restrictions have actually made Bitcoin stronger.

For her part, Katie Haun – partner at venture capital firm Andreessen Horowitz (a16z) – called on American financial regulators to do exactly the opposite of what China has done so far:

“This is an opportunity for the United States because in this area I think we should be doing the exact opposite of what China is doing.”

It seems that the largest economy currently has no intention of implementing such a negative policy towards Bitcoin. Both Fed Chairman Jerome Powell and SEC Chairman Gary Gensler calmed down that the country will not ban the use of digital assets.

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