Chinese Crypto Ban Has Companies Exit Country

As the Chinese Crypto ban comes into effect, China continues to be hostile towards crypto, over 20 Chinese companies dealing with digital assets have announced that they will cease operations and withdraw from local markets.

Chinese Crypto Ban Negative Effects

China’s negative stance on the cryptocurrency industry has been known for years, and the local authorities tend to remind investors about it frequently. At the end of September, the country’s central bank published a document indicating that trading and mining of digital assets are banned within the Chinese borders. It also prohibited people from operating with such exchanges.

Shortly after, many crypto-related companies started shutting down their businesses. According to the China Securities Journal, the number of those entities stands at more than 20 as they will stop providing services and move abroad.

Speaking of such organizations, it is worth noting that the intensified ban caused the major trading venue – Huobi – to suspend new user registration coming from China. A few days later, one of the largest Bitcoin pools – Huobi Poll – moved over $4 billion in BTC from miners. This was the largest inflow of funds since December 18th, 2017.

The Chinese crackdown reached Sparkpool, too. The second-largest ETH mining pool announced last week it has halted access to new users in Mainland China and abandoned all of its services as of September 30th.

On top of everything, the Chinese government seized mining equipment in the northern province of Inner Mongolia marking the 45th such confiscation in that province.

BTC Increases After Ban

While the government of the most populous nation has intensified its efforts to stop any cryptocurrency operations within its borders, bitcoin has resisted these attacks. As of this writing, the price of bitcoin is at $54,500. This represents a 25% increase over the People’s Bank of China’s recent ban.

Edward Snowden, a well-known whistleblower, recently shared his views on the subject. He believes that the Chinese restrictions made bitcoin more powerful.

Katie Haun, a Partner at Venture Capital Firm Andreessen Horowitz, (a16z), urged American financial regulators not to follow the lead of China.

“This is an opportunity for the United States because we should be doing the exact opposite in my mind in this realm of what China is doing.”

As of now, it seems that the largest economy does not intend to adopt such anti-bitcoin policies. Fed Chair Jerome Powell, and SEC chief Gary Gensler assured that there will be no ban on the use of digital assets.