China-based exchange platform, Huobi announced today that they will officially suspend all CNY trading effective immediately, and will instead look towards expanding beyond China. The announcement was made by Huobi’s founder, Leon Li. During this statement, Li focussed on the future of the exchange platform despite the fact that they will immediately cease all cryptocurrency trades against the Chinese yuan.
In his statement, Li expressed his belief that this suspension does not mean the end of Huobi, but instead marks a milestone. He added that this event will continue to be a memorable day in the history of cryptocurrencies, both in Chinese and international markets.
Li continued to emphasize that cryptocurrency has already made a monumental impact on the economic infrastructure worldwide and that they are likely to continue making profound changes to the international financial landscape as we know it today. Li also included a brief insight into the thought process behind the seemingly authoritarian decision of the Chinese government to implement a ban against cryptocurrency activity in China.
In his statement, Li noted China’s slow economic development, compared to other countries. He added that the majority of resources have been allocated to business development, however despite this, the market was still subject to gloomy predictions in the market. Li continued to explain that because of this, China has placed an emphasis on the importance of rigorously regulation since 2015. However, according to Li, this regulation is likely to stilt the growth of China’s economy even more.
Li expressed his and Huobi’s firm belief, that the strict regulation on the part of the Chinese government, will be detrimental to China’s economic development.
Despite announcing the end of their exchange services within China, the popular trading announced, that they will continue to operate under a new project launch called Huobi.pro. This platform will provide international users the opportunity to trade currencies for 10 different cryptocurrencies. In addition, Huobi.pro will include support for Tether (USDT). Huobi.pro will situate their headquarters in Singapore, with a subsidiary office in Hong Kong.
As for Huobi, this platform will be modified to become a trading platform dedicated purely to the use of an undisclosed blockchain consulting and researching firm.
China’s ban on cryptocurrencies has been in place since 4 September, after the People’s Bank of China announced their immediate ban on initial coin offerings (ICOs) and subsequently, all activities pertaining to cryptocurrency.
Li noted in his statement that his firm received an official notice from the People’s Bank of China shortly after the ban announcement which forced all exchanges to immediately suspend their user registrations as well as RMB deposits immediately.
Huuboi has been considered one of the big three exchange platforms. The platform shut down follows not long after a fellow big three exchange service, BTCC, closed their doors due to increased pressure from governmental regulatory bodies.