China News: The Communist Party of China will celebrate its 100th anniversary on July 1. The party has recently taken a strong stance against Bitcoin and crypto mining, causing prices to drop. However, things seem to be moving towards derivatives trading rather than the spot market.
People in China can still hold cryptocurrencies
OKEx, one of the largest cryptocurrency exchanges in China, recently announced that people can still hold cryptocurrencies, even though regulators are stricter on exchanges and mining operations.
The exchange stated that the restriction was “mainly due to potential risks to consumers and society in China.”
Unpopular opinion: if they ban derivs, decentralized derivs will *by and large* comply with local regulations. Founders are humans, they don't want unnecessary legal trouble. This applies to DeFi in general. Only way to achieve full censorship resistance is to go anonymous.
— Qiao Wang (@QwQiao) June 1, 2021
The China Internet Finance Association also warned the public about the risks of investing in cryptocurrencies and focused on the fact that institutions should understand the nature of crypto assets, while financial institutions should not deal with them and comply with them.
MXC and Huobi close futures
China’s largest altcoin exchange MXC has announced that new users in China are prohibited from trading futures.
“Due to recent dynamic changes in the market, MXC will suspend some of our services such as Margin Trading and Futures to new users from a select few countries and regions. Most users will not be affected by this change.”
Another exchange, BitMart, has announced a policy change that it will suspend contract trading services for all Chinese users. While positions that have already been opened on the exchange can be closed, new positions will not be allowed.
Local media outlet Wu Blockchain reported, “Chinese state media severely criticize highly leveraged futures trading.” said.
Huobi, one of the exchanges most sensitive to China’s policy, also announced that it has banned new Chinese users from using futures.