Binance Launchpad may temporarily ban all Chinese users for safety reasons
A few days ago, many Binance users discovered that the trading web platform was banned in China. In it, the exchange’s mobile app is also inaccessible due to backend API calls being blocked. At that time, everything was still just a rumor because it was not confirmed by Binance. And today, crypto blogger Colin Wu officially confirmed Binance Launchpad temporarily bans all Chinese users.
Confirmation: binance launchpad temporarily bans all Chinese users.
— Wu Blockchain (@WuBlockchain) July 13, 2021
Binance Launchpad temporarily bans all Chinese users
As such, China does not have to block users from accessing cryptocurrency exchanges. It was Binance that actively temporarily blocked this trading function for Chinese users.
But it is strange that other functions are normal for Chinese users. Meanwhile, as AZCoin News reported, Huobi was previously banned new Chinese users from using derivatives functions.
Before confirming this news, Wu opened a quick survey about “Can you open the Binance launchpad? Computer and mobile phone”. In it, the majority of users responded that they could not access it. It just doesn’t work in China, even though they use a virtual private network (VPN) service.
On July 8, many Binance users found out that the website had been banned in China. Then, according to some users’ responses, the blocked situation has been fought, Binance may have used some technical methods in an emergency.
Notably, at the moment, Binance’s competitors, such as Huobi and OKEx, are still available in China. Keyword searches for Binance and other popular crypto exchanges were blacklisted by Chinese internet services in early June, as AZCoin News reported.
The Binance ban is part of China’s major crypto crackdown, which also included wiping out the country’s entire Bitcoin mining industry last month. The world’s largest exchange was initially headquartered in China but later had to move abroad due to the 2017 crypto ban.
Binance is also facing strict regulatory scrutiny around the world. Many banks in the UK blocked payments to the trading platform earlier this week.
Binance’s woes could give regulated exchanges a competitive edge. According to Bloomberg, the co-founder of the Gemini exchange, Cameron Winklevoss has stated the company expects to overtake the current largest crypto exchange by volume, Binance, predicting its emphasis on compliance will win out as regulators increasingly crack down on unregulated exchanges.
“We’re trying to be the fastest tortoise in the race. The long game pays off over time”, Winklevoss emphasized the importance of adhering to regulators’ demands.
However, Binance continues to dominate crypto trading volume, estimating Binance’s daily spot trading volume to be more than 100 times that of the Winklevoss twins exchange – with Binance hosting almost $14 billion worth of trade in 24 hours while Gemini posted $117.7 million.
Gemini isn’t the only US-based exchange to prioritize compliance with its roadmap, with Coinbase releasing audited financials amid its IPO earlier this year. Kraken also plans to go public soon, after receiving a regulated banking charter in Wyoming in September 2020.
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