Cryptocurrency Exchange Huobi Sinks After Halting New Chinese User Registration Amid Latest Ban
(Yicai Global) Sept. 27 — Shares of Huobi Technology Holdings plunged as the overseas cryptocurrency exchange announced that it will suspend the registration of new Chinese users amid China’s latest ban on cryptocurrency-related activities.
Huobi’s stock price [HKG:1611] sank as much as 32 percent to HKD6.80 (87 US cents) in the morning trading session, after opening down 15 percent today. On Sept. 24, the firm’s shares closed 14.6 percent down.
Huobi halted the registration of new users in the Chinese mainland on Sept. 24 to meet the local government’s regulatory requirements, the firm announced yesterday. All existing Chinese users will be cleared by the end of the years, it added.
China’s central bank along with other nine government agencies announced on Sept. 24 that all cryptocurrency transactions and mining activities would be illegal to prevent and deal with virtual currency’s risks. The 10 institutions, including the supreme court and internet and securities watchdogs, also banned overseas platforms to hire local staff for roles like marketing, payment, and technical support services.
The new regulations affected several trading platforms. Binance also banned new Chinese users to register, Bloomberg reported on Sept. 25. Blue Helix Exchange will gradually close its services, terminating withdrawals from Oct. 8 and halting operations on Oct. 16, the three-year-old firm announced on Sept. 25.
Founded in 2013 in Beijing, Huobi was once one of the country’s top three cryptocurrency exchanges. In 2014, it completed a Series A financing round led by Sequoia Capital, raising millions of yuan. It moved out of China in 2017, when the country outlawed all such trading, and it is now registered in the Seychelles with its main office in Hong Kong.
Editor: Futura Costaglione
Text source: MCC.EXCHANGE
