A few days ago, the cryptocurrency community discussed a report stemming from the 51st meeting of China’s Central Economic and Financial Commission, which reiterated warnings about Bitcoin mining. Reports reveal Huobi has suspended cloud mining and other crypto services for customers in mainland China.
Amidst stern warnings from cryptocurrency companies, Huobi and Okex have suspended a few services
Rumors about China and Bitcoin’s uneasy relationship continue without end. Several times in 2017, it was said that Bitcoin was resilient to negative news from China, after a tumultuous year with bad news from China in 2013.
2021 is completely different and it seems that the Chinese government’s policy towards crypto in general and the mining industry still makes sense to a lot of people. Following that news, two days later, reports regarding crypto companies Huobi and Okex also surfaced.
The left image is Huobi’s announcement about stopping providing mining services to customers residing in China, the right image is Xinhua news about Bitcoin mining and trading | Source: Wu Blockchain
It is reported that Huobi has ended the sale of cryptocurrency mining machines and cloud storage services to Chinese customers.
Wu Blockchain also discussed the situation on Twitter as follows:
The expression of the Chinese government is to crack down on Bitcoin mining, but it seems absurd to understand it purely from the literal meaning. In fact, there are more MLM involved in such as Fil and Chia.
— Wu Blockchain (@WuBlockchain) May 23, 2021
Wu Blockchain also said that the expression of the Chinese government is to suppress Bitcoin mining. Furthermore, Okex has discontinued the OKB/RMB pair. Accordingly, OKEx’s OKB exchange coin also dropped sharply after that news.
Wu Blockchain added that the two major exchanges in China have only taken minimal precautions. Huobi has canceled the sale and custody of mining machines to the Chinese and Okex has stopped trading the platform’s currency with yuan, they are still waiting for news.
Furthermore, Wu Blockchain has shared another article from China that will attack the Bitcoin mining and trading industry in more detail. There is currently no definite information about Bitcoin mining and trading disruptions. However, these problems will continue for the next week or even a month.
Some argue that Chinese investors still account for more than 60% of the trading volume of perpetual contracts. Chinese miners hold large amounts of Bitcoin and Ethereum. We cannot underestimate the impact of Chinese investors on the crypto market.
Read more:
- Hotbit Cryptocurrency Exchange Suffered A Serious Cyber Attack, Declared Shut Down Seven Days To Two Weeks For Maintenance
- Legendary Trader John Bollinger: BTC Is Working On A Short-Term W Bottom At A Logical Place