Over 20 Virtual Currency Companies Withdraw from Chinese Market Following Strict Regulations

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According to data gathered by reporters at Securities Daily, after China introduced new regulations to crack down on virtual currency speculation, as of October 7, over 20 virtual currency-related enterprises have announced that they would stop providing related services to users in China and completely withdraw from the Chinese market.

Virtual currency trading platform, Huobi Global, a well-known virtual currency trading platform, said that it had stopped registering service for new users in China on September 24th. Small and medium-sized platforms such as BiKi and BHEX have also chosen to cease operations.

In terms of mining enterprises, Ethereum mining pool SparkPool said it had initially stopped providing services to new users in China as of Sept. 24, and would completely suspend services to all its existing users, both in China and abroad, as of Sept. 30. MineBee also announced that they would completely stop operating. NBMINER, a video card mining machine management software, announced that it would no longer provide technical support services to users in China and dissolve its QQ group.

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People in the industry believe that this supervision was a precise blow, clarifying the “grey zone” that was blurry before. The notice jointly issued by the People’s Bank of China and other ten departments clearly identified virtual currency-related business activities as illegal financial practices. Financial institutions and non-bank payment institutions are banned from offering services for virtual-currency-related business activities.