Over 20 Chinese digital asset-related businesses revealed they will halt their operations and withdraw from the local market as the country continues its hostile stance on anything crypto.
The Effect of The Chinese Crypto Ban
China’s negative stance on the cryptocurrency industry has been known for years, and the local authorities tend to remind investors about it frequently. At the end of September, the country’s central bank published a document indicating that trading and mining of digital assets are banned within the Chinese borders. It also prohibited people from operating with such exchanges.
Shortly after, many crypto-related companies started shutting down their businesses. According to the China Securities Journal, the number of those entities stands at more than 20 as they will stop providing services and move abroad.
Speaking of such organizations, it is worth noting that the intensified ban caused the major trading venue – Huobi – to suspend new user registration coming from China. A few days later, one of the largest Bitcoin pools – Huobi Poll – moved over $4 billion in BTC from miners. This was the largest inflow of funds since December 18th, 2017.
The Chinese crackdown reached Sparkpool, too. The second-largest ETH mining pool announced last week it has halted access to new users in Mainland China and abandoned all of its services as of September 30th.
On top of everything, the Chinese government seized mining equipment in the northern province of Inner Mongolia marking the 45th such confiscation in that province.
BTC Gets Stronger After The Chinese Bans
Although the government of the most populated nation has doubled down on its efforts to halt all possible cryptocurrency operations inside its borders, bitcoin has ultimately resisted the attacks. In fact, as of the moment of writing these lines, the price of the asset stands at around $54,500, which is about a 25% increase since the People’s Bank of China’s latest ban.
The popular whistleblower Edward Snowden recently shared his thoughts on the matter as well. According to him, the Chinese restrictions actually made bitcoin stronger.
In her turn, Katie Haun – a Partner at Venture Capital Firm Andreessen Horowitz (a16z) – urged the American financial regulators to do the exact opposite of what China has done so far:
“This is an opportunity for the United States because we should be doing the exact opposite in my mind in this realm of what China is doing.”
It seems like, as of the moment, the biggest economy has no intention to implement such negative policies against bitcoin. Both Fed Chair Jerome Powell and SEC chief Gary Gensler reassured that the country will not prohibit the usage of digital assets.