Matrixport exchange founded by Jihan Wu to stop serving mainland China as authorities restrict crypto activities
Recently, more and more exchanges have started shutting down in the Chinese market. According to Wu Blockchain, Matrixport, the exchange founded by Bitmain co-founder Jihan Wu, is also planning to withdraw from the China market.
Source: Wu Blockchain/Twitter
Jihan Wu’s Matrixport to stop serving China
Matrixport is an exchange that specializes in providing crypto interest income, crypto lending, digital asset purchases, and other similar services. Accordingly, the exchange only provides services to mainland Chinese users for just four days until October 15. And then, they will stop the operations in mainland China.
Thus, Chinese users need to quickly withdraw money from the exchange and transfer it to their wallets before the deadline.
Following the new crypto ban announced in China at the end of September, when commercial cryptocurrency transactions were declared illegal, as well as cryptocurrency mining, more than 20 joint business organizations crypto-related has announced that they will be shutting down operations in mainland China. Among them are the exchanges Binance and Huobi – the largest exchanges in the region.
Over the weekend, major crypto miner manufacturer Bitmain also announced that it would stop selling miners to Chinese customers, as AZCoin News reported.
This comes amid a backdrop of China likely to ramp up strong measures to restrict crypto soon, Caijing Magazine reported.
8BTC News also tweet about this news:
Matrixport, which was separated from Bitmain in 2019, issued an announcement stating that it will stop providing all products and services on the App to users in Mainland China from October 15, 2021 Beijing time.
— 8BTCnews (@btcinchina) October 12, 2021
While the new restriction marks any commercial activity tied to cryptocurrencies as illegal, there is no legally approved framework to restrict individuals or companies from doing so; therefore, applicable law cannot be applied. That is why the government is seeking judicial interpretation.
Currently, regulators are digging into the mining and cryptocurrency industries to study the technical side of the question to provide precise pathways to conviction and sentencing. While the security institutions are responsible for taking action, the Central Bank announcement is used as a directive. The methods of order execution are entirely in the hands of the aforementioned regulatory bodies.
Currently, China has banned companies here from providing any services to businesses related to the cryptocurrency industry. The ban also applies to businesses operating abroad. Companies that operate overseas but provide services to Chinese individuals involved in the crypto industry will also be liable under Chinese law.
In addition, Chinese residents also cannot operate as part of a P2P exchange on any platform. While the Central Bank’s announcement mainly applies to companies, individuals providing cryptocurrency exchange services on P2P platforms such as Binance will also be held liable if they decide to work after the notice is released.
Read more:
- The Four-Year-Old Chinese Cryptocurrency Exchange BitZ Announced Its Shutdown Today
- China Ban Drives Users To Withdraw Bitcoin From Huobi Exchange