Leaving China, Crypto Exchanges Cancels Most of their Chinese Businesses

Cryptocurrency businesses have been on the move out of the People’s Republic of China since the government’s extensive crackdown on crypto-based businesses began.

In other to remain operational, crypto businesses has been seeking to move their businesses out of the country to more friendly regions where operations would go on unhindered by the Chinese government’s reaching hands.

For Chinese firms moving out, the case of bitcoin miners comes to mind quickly.

According to the Chinese National Enterprise Information Disclosure System, Cryptocurrency exchange Huobi has applied for the closure of most of its important Chinese companies as at 22^nd of July, 2021.

China’s National Enterprise Information Disclosure System shows that China’s largest exchange, Huobi, applied for the cancellation of its most important Chinese company on July 22. OKEx also cancelled its Chinese company in June. They hope to move overseas, especially Singapore. pic.twitter.com/hJgYpwrdHp

— Wu Blockchain (@WuBlockchain) July 27, 2021

Cryptocurrency exchange OKEx was also noted to have closed its Chinese businesses in June.

A Chinese Journalist named Wu believes that these exchanges are moving especially to Singapore.

Few weeks ago, someone close to the Chinese exchange operators revealed that most of the exchanges moving out of China are relocating to Dubai, United Arab Emirates

There is no denying the move must have been hard for the crypto businesses moving out of the country to setup shops across the globe. And this huge exodus has been getting much pressure since the government has begun moves to release its Central Bank Digital Currency (CBDC).

Expressing position on cryptocurrency, the Deputy Governor of the Chinese Central Bank Fan Yifei said cryptocurrencies are speculative tools and that they threaten financial security & social stability. The Deputy Governor also said China must ‘vigorously promote central bank digital currency’.

Not long after the Central Bank Head called cryptocurrencies speculative tools, the Central Bank released the white paper to its digital currency e-CNY which it said would feature smart contract capabilities to allow for programmability.

All these are coming few weeks after the first cryptocurrency exchange in China BTTC shut down its crypto activities. In a statement, the exchange said they have ‘completely exited from bitcoin-related businesses’ and it has sold its stake in ZG.com, a Singaporean bitcoin exchange to an unidentified organization in Dubai.

What do you think will happen next? What will be the next thing from China? Tell us in the comment section below.