A source told news.Bitcoin.com that the Chinese government was trying to directly manage the cryptographic trading sector in the country. According to the source, this could result in freezing the holdings of US account holders and others. The Huobi Global website has notably announced that the US accounts "have been progressively disabled" due to compliance issues, and that they "will freeze all US user accounts as of November 13, 2019. (GMT + 8) ". The anonymous source maintains the motives for the move goes further than just complying with US standards.
Read also: The anti-blockchain sentiment of China Now Censors and informs the public about Bitcoin
Huobi Global Freezes Accounts
As Bishijie.com, Huobi Global's and China's cryptographic investment community recently reported, the US stock market accounts will soon be frozen. The company had already started to disable user features before the notification. Traders have until November 13 to transfer their assets from the exchange. The post on the blog Huobi details the protocol and the registration procedure for the US version, Huobi US.
Although creating and migrating to specific US exchanges for compliance purposes is not unusual, a Hong Kong-based source and an OTC trader inform news.Bitcoin.com that there is more to to tell, and that they are not just US-based traders. who should be concerned.
Government management of the crypto industry
The source told news.Bitcoin.com that, according to one insider, the Chinese Communist Party (CCP) takes leadership positions in the popular Huobi cryptographic exchange:
This is the fact. Have the CCP members already taken on the role of managing huobi?
A volatile background
As stated earlier, the Chinese government also seems to be now censoring criticism of the blockchain. President Xi Jinping's recent public promotion of technology, associated with the development of the country's central bank's digital currency, called Digital Currency Electronic Payment System (DCEP) – adds additional context to the Hong Kong trader's reports . "President Xi also announced that China would put more resources in the crypto space," he said.
The situation in Hong Kong is unstable, fear of crypto traders is great and some markets may be out of date. According to the anonymous source, the CCP is moving to:
Take every leading company in the (financial) sector. Ali Baba. Tencent.
The statement was raised in early October, when Alipay tweeted:There are several reports on @Alipay be used for bitcoin transactions. As a reminder, Alipay closely monitors over-the-counter transactions to identify irregular behavior and ensure compliance with applicable regulations. "
Do you think Chinese exchanges will, or are, already compromised by the CCP? Let us know in the comments section below.
Image credits: Shutterstock, fair use.
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