On Friday, the cryptocurrency community discussed a report from China’s 51st session of the Central Financial and Economic Affairs Commission reiterating warnings of Bitcoin mining. The following Sunday, reports announced that Huobi had ceased its cloud mining operations and other crypto services for customers in mainland China.
Rumors about China and Bitcoin’s troubled relationship continue
In 2017, it was said several times that Bitcoin (BTC) was resilient to negative news from China after the turbulent year of bad news from China in 2013.
2021 was very different, and it seems that the Chinese government’s policy towards cryptocurrency in general and the mining industry still matters to many people. Following the news on Friday two days later, reports linked to cryptocurrency firms Huobi and Okex have crypto advocates discussing China again.
On Sunday, regional publication chainnews.com released a report detailing Huobi ending sales of mines and crypto cloud hosting services to customers in mainland China. In addition to chainnews.com, local Chinese journalist Wu Blockchain discussed the situation on Twitter.
“Huobi Pool said that it will stop providing services to Chinese users,” the reporter wrote. “Those who have already bought bitcoin mining machines will be removed from the shelves. What is interesting is that Huobi said FIL mining machines will not be affected,” he added.
Local Reporter: “We Can’t Underestimate the Impact of Chinese Investors”
The journalist also said that “the Chinese government’s expression is to take action against Bitcoin mining”. Wu Blockchain went on to say that Okex has stopped using the “OKB fiat currency (RMB)” and the exchange’s platform coin has fallen after the news.
“The two major exchanges in China have taken minimal precautionary measures. Huobi has delisted the sale and custody of mining equipment to the Chinese, and Okex has ceased trading platform currencies with RMB. They are still waiting [for] tomorrow, ”he added.
In addition to Wu Blockchain’s tweet, Huobi made a statement to global macro and policy reporter David Pan. “Due to the recent dynamic market changes, in order to protect the interests of investors, some of the services such as futures contracts, ETPs or other leveraged investment products are temporarily unavailable to new users from certain countries and regions. Said the Huobi statement shared with Pan.
In addition, Wu Blockchain published an article by the Xinhua news agency in which “Bitcoin mining and trading in detail” are attacked. The reporter also notes that there is no “clear information” on how to combat bitcoin mining and trading. Still, the local reporter believes these problems will persist “for the next week or even a month.”
“Chinese investors still account for more than 60% of the volume of open-ended contracts traded,” the reporter concluded. “Chinese miners hold large amounts of Bitcoin and Ethereum. We cannot underestimate the impact Chinese investors have on the cryptocurrency market. “
What do you think of all the rumors swirling around in China and cryptocurrency again? Let us know what you think on this matter in the comments section below.
Photo credit: Shutterstock, Pixabay, Wiki Commons, Wu Blockchain, Twitter,
Disclaimer of liability: This article is for informational purposes only. It is not a direct offer or an invitation to submit an offer to buy or sell, or a recommendation or approval of products, services or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author are directly or indirectly responsible for any damage or loss caused or allegedly caused by or in connection with the use or reliance on any content, goods or services mentioned in this article.