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Five Chinese exchanges halt operations

Sam Webb

At least five Chinese exchanges have shut up shop or will no longer cater to domestic customers as China continues its crackdown on crypto.

Trading cryptocurrencies has been illegal in China since 2017, but recently there have been signs Beijing’s stance on the sector was softening.

The economic powerhouse is investing heavily in blockchain after President Xi Jinping told top officials that the tech is vital to the future of the country.

But financial watchdogs in the communist nation have ordered cryptocurrency firms to close and warned residents to be wary of digital cash investments.

This week, cryptocurrency exchange IDAX Global announced its CEO has gone missing – so the company has restricted access to its cold storage solution.

The shock announcement follows upheavals as the exchange revealed demand for IDAX withdrawals rose dramatically after it was pulled from the Chinese market.

xi jinping, china cryptocurrency

This month, it was revealed Beijing has abandoned plans to effectively ban cryptocurrency mining.

In April, China’s central state planner released a list of industrial activities it wants to eliminate. The list included Bitcoin mining because it “harms the environment”.

But now, the National Development and Reform Commission has published a revised list – and crypto mining has disappeared.

China is a huge mining hub – despite Bitcoin being banned in the country – thanks to its vast supply of cheap power.

China has also announced it is testing a national cryptocurrency and will release it soon.

 

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