Get the weekly summary of crypto market analysis, news, and forecasts! This Week’s Summary The crypto market ends the week at a total market capitalization of $1,165 trillion. Bitcoin is up by over 2% after a rollercoaster of a week. Ethereum decreased by almost 1% over the past seven days. XRP gained more than 15% in value this week. Almost all altcoins are trading in the green, with very few exceptions. The DeFi sector decreased the total value of protocols…
Crypto Companies Flee China Following Government Policies
China’s crypto crackdown was always going to affect the industry in several ways. However, the country still holds a significant stake in the industry. It appears that the fallout of its crypto ban is quite strong.
Everyone is Leaving China
Several crypto companies are leaving China this week. They’re doing so because the government has made all crypto transactions illegal. Like South Korea, China regulates crypto harshly.
The exits have been swift. Crypto exchange BitMart announced that it would remove all accounts created from mainland China by November 30. The company wants to comply with the Chinese government’s new guidelines. So, this is the best way for it to do so. After November 30, BitMart confirmed it would stop providing any service to mainland China.
Feixiaohao, another crypto trading platform that has been getting some traction. In its own blog post, the trading platform confirmed that it would stop serving Chinese customers. This should start before the end of September.
Biki is another crypto exchange that is leaving China. The company said that it will stop accepting all deposits this week. Chinese customers would still be able to withdraw their funds till November 30. After then, the exchange will stop working in the country for good.
Also, reports confirmed that several crypto services won’t work in China again. These include CoinMarketCap, CoinGecko, and even TradingView. China’s internet firewall has blocked many of these services.
Local news sources reported that at least 18 companies have pulled out of China. The government is now implementing its crackdown. So, they have nowhere else to go.
Traditional Tech Bows Out
In typical Chinese fashion, this crackdown is absolute. Last week, the Peoples’ Bank of China (PBOC) announced a new set of rules to make crypto adoption impossible. The agency will also cooperate with others to crack down on any crypto activity.
The PBOC’s action will add several state authorities to its effort. These include the Cyberspace Administration of China and the Ministry of Public Security. They all hope to prevent crypto transactions in the country by working together.
Interestingly, the crackdown has also spilled over to tech companies. This week, Alibaba said it will close all crypto-related services on its platform. In its announcement, Alibaba said it would ban the sale of crypto miners. The company will also suspend the “blockchain miners and accessories” category on its website from October 8.
Alibaba will also prevent the sale of any crypto assets on its platform. This restriction will even apply to mining hardware and software. People selling crypto tutorials will receive bans too.
Sellers found violating this law after October 15 will face penalties. Alibaba could block their stores and freeze their accounts.