Huobi suspends Services For Chinese Users In the aftermath of Crypto Ban

Huobi Global, China's most popular cryptocurrency exchange, was the first to announce the shutdown of its services in the country, this was prompted by China's new push for a crypto crackdown.

New registrations using mainland China mobile numbers have been shut down by the famous cryptocurrency exchange Houbi. For Hing Kong users, however, fresh registrations are still allowed.

During the last crackdown cycle in May-June of this year, Huobi restricted Chinese users from the riskier crypto derivatives market.

The People's Bank of China published a comprehensive handbook on the crypto crackdown, declaring all cryptocurrency transactions unlawful.

The regulation guidelines, which are thought to be the first of their type, provide specific instructions on how to restrict mining and crypto trading in the country. In addition, the Chinese Central Bank has warned foreign crypto exchanges against operating in mainland China.

Although, China's ban on cryptocurrencies isn't new, and it's become something of a pattern during bull markets, such as the one we're in now.

Chinese insiders, on the other hand, argue that the present set of instructions is unprecedented, as it encompasses nine other significant institutions, including the Supreme Court. Similar announcements are expected from other big Chinese crypto exchanges like OKEx and perhaps Binance.

Every bull cycle, China FUD has often culminated in a massive crypto market sell-off; the latest May market mayhem, which saw roughly $500 billion wiped out of the crypto market, is also said to have been spurred by the China crypto ban.

When compared to prior sell-offs, the crypto market appears to be more resilient to the FUD, as key crypto assets such as Bitcoin and Ether suffered minimal price corrections.

Despite a significant fall of about 5% in the aftermath of the announcement, traders have taken advantage of the opportunity to purchase the dip, according to trading data from crypto analyst Santiment.

With the news of #China (again) banning #crypto trading and mining once again, Friday prices plummeted. As smoke has cleared, many traders have used this as nothing more than another #buythedip opportunity. https://t.co/kE1PpI4jy6 pic.twitter.com/R58CFPSHL3— Santiment (@santimentfeed) September 24, 2021