Binance Closing Yuan Trading After Cypto Ban by China

Binance Holdings Ltd. has shut down peer-to–peer trading of yuan. This is one of the few workarounds available for Chinese users following Beijing’s blanket ban.

According to a statement, the world’s largest crypto exchange will end yuan-dominated trading on its over-the counter platform Dec. 31. It will also run checks, and users located in mainland China will not be permitted to withdraw funds from its platform.

Chinese regulation comes into effect

Binance has joined a host of crypto companies in making plans for a complete departure from China. This is after Chinese regulators declared that all types of transactions and services are prohibited. Huobi, a rival exchange, has stated that it will eliminate existing users who are based in China by the end of the year.

Binance had previously exited China’s mainland China market in 2017. However, the firm launched in 2019 a peer to peer platform that allows users to trade Bitcoin, Ether, and Tether against Chinese currency. It also participated in a round of financing that valued cryptocurrency-data site Mars Finance at around $200 million.

Beijing’s recent crypto ban has effectively ended any hope that platforms and exchanges can remain in China. The central bank issued the Sept. 24 rules that prohibited all crypto transactions in China. This includes services offered by offshore exchanges. They also ban overseas platforms from hiring local staff for roles such as marketing, tech, and payment.

Binance is not alone

Huobi, one of the largest crypto exchanges in the world, is a company whose revenues are likely to be influenced by the new Chinese ban.

“For historical reasons, we have a certain proportion of our user base in mainland China. The accounts of retired Chinese users in mainland China will have a certain impact on the company’s revenues in the short term,” he told Cointelegraph a Huobi spokesman on September 28th.

“Huobi’s diversified companies outside of China have reached almost 70% in terms of marketing volumes,” the representative added.