China has continued to crackdown on cryptocurrencies, removing huge amounts from bitcoin and etherium exchanges. Huge pressure from the Chinese central bank has seen the suspension of exchanges in the region following the latest repeal of China’s crypto ban. In light of this, huge amounts of crypto are being transferred from exchange wallets to perhaps secure wallets.
Transactions are thought to be going to cold wallet storage. Crypto crackdown in the country has boosted USDT sales against the yuan as users tried to get rid of their crypto holdings before the ban was fully enforced. The latest release from the People’s Bank of China targets over-the-counter activities conducted on the Hubi and OKEX exchanges and declares that converting Fiat to crypto or crypto-to-crypto is now considered an illegal activity in the country.
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য়ে 3.1 billion has been moved to Bitcoin and $ 2.4 billion to Ethereum
After Hubei announced it would retire active user accounts in mainland China, the exchange has begun to move funds. The exchange on Sunday transferred a total of .. 3.1 billion to BTC. The activity was marked by BTCSipers which marked the initial transfer of 72,999 bitcoins from Houbi’s wallet. The latter was transferred to 2,000 BTC increments. The 1,800 bitcoins then went to a single address and the rest were split into smaller wallets. It may seem strange but perhaps the exchange is that the funds they think are safe.
Huobi exchange moves 800K ETH | Source: Whale Alert
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Ethereum transfer has taken a different path. The wallets that were identified as belonging to the Hubby Exchange began transferring Etherium to unknown wallets. When transferred, 800K ETH was transferred. A total of eight Ethereum transactions have been made, each carrying 100K ETH worth more than $ 285 million. A total of $ 2.4 billion added to ETH has gone to unknown wallets.
Exchange Retired Chinese user account
Exchanges explain that they will start retiring user accounts after the latest ban is announced. The process was supposed to be slow to ensure that users’ funds were protected. Mainland China user accounts are due to expire on December 21, 2021, the last day of the year. This gives investors about three months to fix their crypto issues. But despite this long period, the price of USDT has dropped to 6.12 yuan per quintal, seeing the rush to get rid of crypto holdings.
This is not the first time that China has banned cryptocurrencies. And every time this ban was announced, it had a negative impact on the market and the latest ban was no different. The announcement saw a crash in prices across the crypto market. Although the market has recovered. Although the effects of the crash are permanent.
ETH price down following crackdown | Source: ETHUSD on TradingView.com
Featured image from DigitalTokens.io, chart from TradingView.com