[Bitcoin Now] Slight Drop to 51 Million KRW Range... Continued 'Decoupling from China' in the Cryptocurrency Industry

Huobi Global, Binance and Other Major Cryptocurrency Exchanges Begin Exiting China

[Image source=Reuters Yonhap News]

[Asia Economy Reporter Gong Byung-sun] The leading cryptocurrency Bitcoin slightly dropped to the 51 million KRW range. This is interpreted as the cryptocurrency industry trying to escape pressure from Chinese regulatory authorities, negatively impacting the market.

According to the domestic cryptocurrency exchange Upbit, as of 5:13 PM on the 28th, Bitcoin recorded 51.07 million KRW, down 1.47% compared to the previous day. It even fell to 50.8 million KRW at 5:10 PM on the same day.

Chinese regulations still appear to act as a negative factor in the market. On the 27th (local time), the Chinese cryptocurrency exchange Huobi Global announced in a statement that it would stop opening new accounts in mainland China and sequentially close accounts within China by the end of this year. As of the 28th, Huobi Global is the sixth largest cryptocurrency exchange worldwide by trading volume, listing as many as 356 coins.

Other cryptocurrency exchanges have also started to exit China. Binance announced it would block Chinese internet protocol (IP) addresses and prevent new account registrations using Chinese phone numbers. Exchanges such as BitMart and Biki also explained that they plan to begin cleanup operations, including blocking user accounts within China by November 30.

China is one of the countries with the strictest cryptocurrency regulations. According to the US economic media CNBC on the 24th, the People's Bank of China, the central bank, declared all activities related to cryptocurrencies illegal and stated it would punish anyone trading cryptocurrencies. Furthermore, it defined overseas cryptocurrency exchanges providing services within China as illegal.

When Bitcoin fell from the 70 million KRW range in May to the 50 million KRW range, Chinese regulatory authorities also had a significant impact. At that time, the Financial Stability and Development Committee of the State Council, chaired by Vice Premier Liu He, announced after a meeting that it would strictly crack down on Bitcoin mining and trading. As a result, cryptocurrency mining volume in China decreased by 90%, shrinking the cryptocurrency market.