Restrictions recently enforced by the People’s Bank of China have a direct impact on exchange users in mainland China. The People’s Bank of China, among other regulators, is stepping up its battle against Bitcoin (BTC) and other cryptocurrencies in general.
Suppressing cryptocurrencies: Huobi Global bows to People’s Bank of China
Huobi Global said in a statement on September 26, 2021, that it will cease creating new accounts for customers in mainland China as of September 24, 2021. The exchange also stated that it would gradually terminate user accounts in mainland China on December 31, 2021, at midnight UTC+8. The Exchange cites a need to comply with local laws and regulations as justification for these targeted efforts.
The judgments follow the People’s Bank of China’s announcement that cryptocurrency-related operations, other than storage, are prohibited in the nation.
Huobi Global folds its Arms: China’s Regulatory Pressure
Huobi Global is one of the first big exchanges to submit to Chinese authorities’ demands. Its native cryptocurrency, the Huobi Token (HT), dropped 15% within an hour of the exchange’s announcement, and fell 50% at the pinnacle of the correction.
After the news, the price of Huobi Token (HB) decreases.
While Binance has already halted new user registrations using Chinese phone lines, OKEx is yet to issue a comment.
Chinese authorities are tightening their grip on cryptocurrencies following a crackdown on miners located in the country, a search for miners that resulted in a massive exodus of mining farms to Canada and the United States.
In a joint statement, ten government institutions, including the People’s Bank of China and local market regulators, warned that they would work closely together through new mechanisms to maintain regulatory pressure on cryptocurrencies high.
Will China shock the cryptocurrency markets before the end of 2021, once again prohibiting Bitcoin and its offshoots from entering its borders? It has already managed to drive Bitcoin down near $45,000, so limiting measures implemented by Huobi and any exchanges that follow suit might put even more negative pressure on markets.
People’s Bank of China: Reaction of U.S. Senator
It is almost astonishing to read the statements of this United States senator, who is denouncing China’s assault on cryptocurrencies while stressing economic freedom in the United States.
China’s cryptocurrency ban prompts a senator to speak out about financial freedom in the United States.
The date is September 24, 2021. Pennsylvania According to Senator Pat Toomey, who sent the following tweet, China’s crackdown on cryptocurrencies is an opportunity for the United States: “China’s crackdown on cryptocurrencies is an opportunity for the United States.”
“China’s authoritarian crackdown on cryptocurrencies, including #Bitcoin, is a great opportunity for the U.S. It is also a reminder of our huge structural advantage over China.” – Senator Pat Toomey
The People’s Bank of China has released a statement prohibiting any action using cryptocurrencies in the nation other than the mere possession of them. As a result, exchanges such as Huobi Global have been obliged to stop the registration of new users in mainland China, as well as to progressively cancel the accounts of consumers who have been affected by the restrictions.
Chinese authorities, according to Senator Pat Toomey, have been losing out on one of the most significant financial advances in decades because of the anti-cryptocurrency policies of the country’s financial institutions:
“Beijing is so hostile to economic freedom that it cannot even tolerate its people’s participation in what is perhaps the most exciting financial innovation in decades. Economic freedom leads to faster growth and ultimately higher living standards for all.”
The Securities and Exchange Commission of the U.S.
Pat Toomey expresses support for cryptocurrencies, but do his comments really represent the views of U.S. regulators on Bitcoin (BTC) and its younger siblings? The Securities and Exchange Commission (SEC) has outlined to Congress the areas in which its staff is now working to regulate cryptocurrencies.
However, given the language of Commission Chairman Gary Gensler, who regards the cryptosphere as the Wild West, the consequences of these efforts to regulate cryptocurrencies raise doubts about whether they will have a good or bad influence on the industry.
The United States has profited from the influx of Bitcoin miners from China, with new Bitcoin mining facilities springing up around the country. At some point, though, U.S. regulators will almost certainly be forced to make a choice: they will either come out in support of cryptocurrency growth, adopting a pragmatic approach, or they will be put under pressure to maintain the hegemony of the dollar.