China’s Largest Crypto Trader Huobi Closes Futures And All Derivatives In China Today As Planned
Colin Wu, a Chinese journalist and blogger that covers all things to do with blockchain and crypto, has tweeted that, in accordance with announcements made earlier this fall, Huobi will cease to trade all cryptocurrency futures and other derivatives products for users in mainland China.
Huobi closes its derivatives in China
Previously, Huobi was the first exchange to announce that it had decided to pull out of mainland China due to the Chinese government’s continued cryptocurrency ban.
Other crypto trading platforms and crypto companies, including crypto mining pools, followed Huobi’s example. This list includes BTC.com and Bitmain. The Coinex exchange is withdrawing from China and the Renrenbit exchange, created by the “OTC king” of China, Zhao Dong, is completely shutting down.
Binance has joined Huobi as well.
Possible reasons for Chinese crypto ban from various influencers
World’s Richest Man, Centibillionaire Elon Musk, Says Cryptocurrency Threatens Chinese Communist Party Dominance in the Country; hence the continuation of the crypto ban that began in 2017, when the government banned ICOs.
Author of the bestselling “Rich Dad, Poor Dad” book on financial self-literacy, investor Robert Kiyosaki, believes that the crackdown on crypto and crypto miners is due to China’s plans to launch its own CBDC—digital Chinese yuan (DCEP)—soon, and the government is simply making way for it by wiping out any competition.
China seeks to tax crypto exchanges
Oddly enough, despite the announcement that all crypto transactions are outside the law, authorities admit that the ban does not yet have a full legal basis. While seeking ways to implement this into the local legislation system, Bitcoin remains legal to own as property.
In addition, China now wants to tax crypto exchanges that provide services to Chinese users, even those based outside of China.
