“Customers will be able to transfer their assets to other exchanges or wallets over the next few months. Specific measures and operating rules will be outlined in future announcements,” says Huobi Group co-founder Du Jun.
As indigenous crypto exchanges like Huobi take aggressive measures to secure and repay existing money residents on the mainland, the anxieties caused by China’s blanket ban on crypto trading have subsided.
In an interview with Cointelegraph, Du Jun, co-founder of Huobi Group, claimed that as part of its social responsibility, the crypto exchange wants to secure the safety of its users’ assets:
“Customers will be able to transfer their assets to other exchanges or wallets over the next few months. Specific measures and operating rules will be outlined in future announcements.”
The crypto exchange is also working on various measures to secure customer funds until they can shift them to offshore exchanges or wallets, citing the likelihood of a communication gap with Chinese investors as a reason for the prohibition.
Prior to the crypto prohibition, Chinese investors accounted for more than 30% of trading volumes, but as Jun points out, Huobi has witnessed significant adoption in Southeast Asian and European markets.
“Any short-term impact on Huobi revenues will be mitigated as our worldwide business continues to grow,” the exchange said.
While following the People’s Bank of China’s and other Chinese regulatory authorities’ bans on crypto trading and mining, Jun plans to ramp up Huobi’s compliance efforts and continue to create compliant operations on a worldwide scale.
Soon after a new crypto ban went into force on Friday, mainland Chinese crypto exchanges, including Huobi, began halting new customer registrations. Huobi later declared that all mainland Chinese accounts would be deleted by 24:00 UTC+8 on December 31, 2021.
Historically, China has accounted for the majority of Bitcoin (BTC) mining. Due to the government’s lack of support, Chinese miners have continued to shift off-shore to crypto-friendly states.
According to a recent report by Cointelegraph, this is China’s 19th attempt to regulate Bitcoin and cryptocurrencies in the last 12 years.
While China’s move to restrict crypto trades forced some naive investors to panic-sell, Bitcoin’s price continues to exhibit optimistic signs, thanks to proactive support from crypto exchanges and consumers throughout the world.