Following a new wave of crackdown on the cryptocurrency industry launched by Beijing on 24 September 2021, more than 20 companies have announced their withdrawal from the Chinese market, the China Securities Journal has calculated.
In a joint notification by the People's Bank of China and nine government agencies, commercial transactions in virtual currencies have been classified as illegal financial activities with the prospect of criminal prosecution, the Journal pointed out.
For the first time, the Supreme Court, People's Procuratorate and Ministry of Public Security were among the agencies that signed the central bank's statement on cryptocurrencies, industry experts noted.
In their view, the country's cryptocurrency market has suffered heavy losses and there may be no chance of recovery.
On 24 September, bitcoin exchange Huobi stopped registering new users from the PRC. The platform warned that it would delete existing accounts of residents of the country by December 31.
However, according to Bloomberg, the company made the decision to leave earlier.
On October 6, journalist Colin Wu reported that Huobi founder Li Lin had decided to leave the country. He cited fears of persecution by the authorities.
Huobi founder Li Lin: I'm sorry for Chinese users. I don't want to go abroad for the sake of my family. If you don't have Huobi, you still have binance and okex.
Smaller local platforms, including BiKi, BitMart and BHEX, announced the closures.
Inner Mongolia provincial authorities said they confiscated 10,100 mining devices and shut down more than 45 cryptocurrency mining businesses. Theoretically, this would save the region 6.58 billion kWh of electricity over the year, officials specified.
The Jiangsu regional government said the miners were consuming 260,000 kWh a day and announced action against them.
In late September, major Ehereum mining pools SparkPool and BeePool announced the closure. F2Pool blocked the registration of new users from the PRC.
Chinese online commerce giant Alibaba banned the sale of cryptocurrency mining equipment on its platform. The largest producer Bitmain also stopped selling mining devices in the country.
Access to CoinGecko and CoinMarketCap services from Chinese IP addresses has been blocked since 28 September.
Recall that Circle CEO Jeremy Allaire called on the United States and other Western countries not to resemble China in terms of cryptocurrency regulation.
Senator Pat Toomey said that the opposition to digital assets by Chinese authorities was a great opportunity for the US in the crypto industry.
Federal Reserve Chairman Jerome Powell has assured that the regulator has no intention of banning virtual currencies.