- Huobi admits to communicating with regulators and exploring ways of legally operating in China to no avail.
- Mainland China users at cryptocurrency exchanges and related businesses were removed as a testament to Beijing's resolve.
- Overall, the Huobi Group generates over 70% revenue of its business outside of China.
The Seychelles-based cryptocurrency exchange Huobi was originally founded in China, but due to the Chinese government’s crackdown on the crypto sector, Huobi ended its China-based activities last month.The exchange has accepted that cryptocurrency businesses cannot operate in China legally by tiptoeing around the regulation. Retail traders in the Mainland accounted for nearly 20% of Huobi's revenue.
Huobi Global leaves China for good, after the world's largest exchange Binance
China's largest exchange, Huobi, decided to abandon its home on September 24, 2021. The move came as shareholders made decisions of Huobi's global expansion.
After Huobi's announcement, Beijing exercised a ban on all cryptocurrency transactions, businesses and services.
Huobi has publicly admitted that the exchange ceased negotiations with the Chinese government and decided to concentrate on global expansion.
Du Jun, a co-founder of Huobi, said,
In the past, we had been communicating with regulators to see if there are still ways to legally operate in China. But this time, there's no room for discussion. Our strategy is all about going global now.
Huobi pool was the world's eighth-largest Bitcoin pool. Nearly $4.21 billion worth of BTC moved out of Huobi on September 26, one of the highest outflows since December 18, 2017.
Bitcoin outflow on September 26, 2021, after Huobi's announcement.
Huobi's decision to offboard Chinese users has created a class of traders who refer to themselves as "Huobi Refugees."
From acquiring a foreign passport to moving their cryptocurrency assets to wallets and apps that support mainland China users, "Huobi Refugees" are ready to do whatever it takes to evade China's crypto ban.
The exchange started its global expansion in 2020, and the Huobi Group makes 70% of its revenue globally (outside China). Chinese retail traders account for 20% of the exchange's revenue.
Adam Cochran, a partner at Cinneamhain Ventures, reacted to Huobi's decision of removing CNY pairs and Chinese users.
Pretty crazy to see Huobi withdrawing CNY pairs and users.
— Adam Cochran (@adamscochran) October 2, 2021
While China 'bans' Bitcoin and trade speculation frequently, this year certainly seems to have had more teeth.
Doesn't go into effect until December, but not a very nice Christmas present! https://t.co/p7XczDnfnz
Lesser-known cryptocurrency exchanges, wallets and applications followed Huobi's footsteps and started removing Chinese users to comply with Beijing's ban.
There will be no homecoming for exchanges and applications leaving Mainland China.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Celebrity meme coins controversy continues amid Pump.fun revenue dominance
Pump.fun outperformed the Ethereum blockchain on Tuesday after raking in $1.99 million. Following this achievement, a meme coin based on actress Sydney Sweeney was the subject of controversy after its developers dumped their bags on investors.
PEPE's on-chain metrics indicate potential rally after weeks of silence
PEPE has struggled to see any significant price move after reaching an all-time high in May. Increased adoption rate and low MVRV ratio indicate a bullish run may be on the horizon. A single PEPE outflow from Binance worth $14.7 million gives credence to signs of bullish expectation.
Ethereum has failed to overcome key resistance despite bullish sentiment surrounding ETH ETF
Ethereum (ETH) is down more than 1.4% on Tuesday following another ETH sale from the Ethereum Foundation. Meanwhile, crypto exchange Gemini's recent report reveals that ETH ETF could see about $5 billion in net inflows within six months of launch.
Crypto community blasts Polkadot following report of treasury spending
Polkadot reports $87 million of treasury spending during H1. Crypto community members expressed harsh feelings toward the DOT team's high spending. DOT is up more than 2% in the past 24 hours but risks correction following the report.
Bitcoin: BTC price correction could end in July, according to seasonal data
Bitcoin (BTC) price appears poised for a decline this week, influenced by slight outflows in US spot ETFs, selling activity among BTC miners, and a combined transfer of 4,690.28 BTC to centralized exchanges by the US and German governments.