Cryptocurrency News

Binance To Halt OTC Trading Of Chinese Yuan For Citizens

Binance, the biggest crypto exchange across the world in terms of trade volume, announced to stop its over-the-counter (OTC) trading of the yuan (the official currency of China) for the residents. For having compliance with the native regulations, the exchange has declared that it will halt the OTC services regarding the Chinese yuan for the consumers thereof from 31st December onwards. Soon after the declaration, a dip was witnessed in the price of BTC in the crypto market to a great extent.

In a post published on 13th October, Binance stated that it would put a closure on the respective OTC trading for the chief currency of China. The exchange also made it clear that it will have a close observation of the customers on its platform, and if any of them is identified as belonging to mainland China, the firm will convert the accounts thereof to a type in which there is permission for withdrawal only. It means that those clients will be permitted to close their respective positions and take out their funds from the exchange.

The firm described the ongoing crackdown of Chinese authorities against the crypto industry as the reason behind this severe move. The country and the central bank thereof demonstrated a further hostile move in the September of this year by restricting all the organizations within the country to have trade with any firms even slightly connected with Binance. As a consequence, more than 20 companies had to put a straightforward termination over the local outlets, including other big exchanges such as Huobi and KuCoin.

As per Colin Wu (a prominent Chinese journalist), WeChat (the most noticeably utilized platform of social media across China) has begun to dump the searches regarding the venues for the trading of virtual assets in addition. Wu, in a tweet, mentioned that approximately all the Chinese applications and websites have stopped or will stop exchanges. As it occurred in the former ban reiteration of China, a swift upsurge has been seen in the price value of the tokens of a few decentralized exchanges following the announcement of Binance today, Wu added. Simultaneously, the majority of the crypto market is dipped in red. The value of Bitcoin (BTC) traded over $56,500 in advance to an abrupt vehement candle pulled it down by nearly $2,000, and now it is settled at around $55,000.

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