Bybit, a popular Chinese-based crypto derivatives exchange, announced that it will terminate all accounts registered with a Chinese phone number until June 15. The platform already banned the Chinese IP address last year. The decision to remove all accounts associated with a Chinese phone number appears to have been taken by the Chinese government in light of a new crackdown on crypto trading and mining. The news was announced by Wu Blockchain:
“The derivatives exchange Bybit took the heaviest measures: On June 15, it will close the accounts of all users registered with Chinese mobile phone numbers. Bybit banned Chinese IP in 2020. The exchange was founded by a Chinese team in Shanghai. ”
Derivatives exchange Bybit has given the most severe measures: on June 15th, it will close the accounts of all registered users of Chinese mobile phone numbers. Bybit banned Chinese IP in 2020. It was founded by the Chinese team in Shanghai. pic.twitter.com/JYnqXQ2bAN
— Wu Blockchain (@WuBlockchain) May 25, 2021
The action taken by the derivatives exchange seems to be the most severe among many other exchanges that pause their services to Chinese customers or expect more clarity from the authorities.
China had banned crypto trading and exchanges until 2017, but despite regulatory restrictions, crypto investments have increased especially during this bull season. The development of the digital yuan, the national CBDC, does not offer decentralized crypto assets; It was seen as a measure to maintain full control over the country’s money flow.
Is China’s Recent Crypto Pressure The Most Violent Ever?
Over the years, China has announced that it has put pressure on the crypto trade several times, which is understandable as crypto trading is prohibited in the country. However, the latest edition seems to be the most violent among all this time, due to the upcoming digital yuan launch.
The pressure on bitcoin mining is also nothing new to China, but recently the government pledged to be carbon neutral, and excessive mining in rural provinces has led to the State’s inability to meet its carbon emission targets.
While the Chinese FUD is causing a panic selling among new investors, experienced investors in the field believe the pressure will only help Bitcoin mining to be more decentralized and renewable energy focused.
How Market Experts Evaluated the Progress?
Many comments came to the tweet in which the allegation was shared. ICRYPEX Research Manager Beste Naz Süllü (@bestenazsullu) was among those who evaluated the development. Beste Naz Süllü, one of the names closely followed by the crypto market, evaluated the claim as a “mistake”:
“Bybit announced that as of June 15, all user accounts registered with a Chinese phone number will be closed. Let’s see who will lose the throne with this mistake made by China. “