Colin Wu, a Chinese journalist and blogger that covers all things to do with blockchain and crypto, has tweeted that, in accordance with announcements made earlier this fall, Huobi will cease to trade all cryptocurrency futures and other derivatives products for users in mainland China.
According to previous announcements, Huobi, China's largest exchange, will today completely shut down futures, contracts and other derivatives functions for all Chinese users. https://t.co/TNx4CvrzJ7— Wu Blockchain (@WuBlockchain) October 29, 2021
Huobi shutting down derivatives in China
Previously, Huobi was the first exchange to announce that it decided to withdraw from mainland China due to the continuation of the cryptocurrency ban imposed by the Chinese government.
Other crypto trading platforms and crypto companies, including crypto mining pools, followed Huobi's example. This list includes BTC.com and Bitmain. Coinex exchange is withdrawing from China and Renrenbit exchange, set up by the "OTC king" of China, Zhao Dong, is closing down its business completely.
Binance has joined Huobi as well.
Possible reasons for Chinese crypto ban from various influencers
The wealthiest man in the word, centibillionaire Elon Musk, believes that cryptocurrency is threatening the dominance of the Chinese Communist Party in the country; hence, the continuation of the crypto ban that began as early as 2017, when the government prohibited ICOs.
Author of the bestselling "Rich Dad, Poor Dad" book on financial self-literacy, investor Robert Kiyosaki, believes that the crackdown on crypto and crypto miners is due to China's plans to launch its own CBDC—digital Chinese yuan (DCEP)—soon, and the government is simply making way for it by wiping out any competition.
China seeks to tax crypto exchanges
Curiously, despite announcing that all crypto transactions are outside of the law, the authorities admit that the ban does not yet have a full legal basis to it. While seeking ways to implement this into the local legislation system, Bitcoin remains legal to own as property.
Besides, China now wants to tax crypto exchanges that are providing services to Chinese users, even those based outside of China.