20 crypto firms from China withdraw services for users amid heavy crackdown

  • Amid heavy regulatory measures initiated by the PBoC, 20 crypto companies in China will be suspending their operations.
  • The Jiangsu Provincial Government found that over 4500 IPs in the province were still involved with crypto mining activities.

China’s heavy-handed crackdown on the country’s local crypto sector is forcing many players to shut down their operations. As of Thursday, October 7, over 20 crypto companies in China have suspended their services for Chinese users.

Popular Chinese journalist Colin Wu also reported that these players have announced an absolute withdrawal from the Chinese market. This comes amid high regulatory action initiated by the Chinese central bank – People’s Bank of China (PBoC). Two months back, ten departments including PBoC issued regulations that rectify the “virtual currency hype”. As a result, several crypto trading platforms, mining companies, and websites have responded to these regulatory policies.

Following the September 24 order by the PBoC, one of China’s biggest crypto trading platforms Huobi stated that it has stopped taking new users registrations on the platform. Previously, Huobi has already announced the closure of its existing accounts in Mainland China by December 31, 2021.

Huobi has been operating as one of china’s biggest crypto trading platforms over the last few years. Its fallout all of a sudden due to regulatory crackdown has come as a major shock to the Chinese crypto community. Huobi founder Li Lin said that it has been a sad decision for him to completely withdraw from China. But for the sake of his family, he will have to do that.

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Jiangsu provincial government cracks down on crypto mining

The Jiangsu Provincial Government of China recently conducted an inspection wherein it found that 4,502 addresses from Jiangsu were participating in crypto mining, As a result, the administration has been comprehensively investigating virtual currency “mining” activities. The latest investigative report coming from the administration notes:

The Jiangsu Provincial Communications Administration attaches great importance to comprehensive investigations of the virtual currency “mining” behavior in our province. It has been monitored that the export traffic of mining pools in our province carrying out virtual currency activities reached 136.77 Mbps, and the total number of Internet IP addresses participating in “mining” is 4502. Consumption of computing power resources exceeds 10PH/s, and energy consumption is 260,000 kWh/day.

The administration further noted that major mining activities happened in Suzhou, Xuzhou, and Nanjing. From the nature of the IP addresses traced, they found that 21 percent of the people belonging to the “government agencies, universities, and enterprises” were invading and conducting virtual currency “mining” during the period.

The announcement further notes that the Provincial Communications Administration will form a “multi-dimensional, multi-level” disposal system to conduct further investigation and cooperate with the relevant department.

The Chinese government will not be leaving it anyway until they force every company to shut down its operations.

About Author

Bhushan is a FinTech enthusiast and holds a good flair for understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In his free time, he reads thriller fictions novels and sometimes explores his culinary skills.

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