On July 8, many Binance users found out that the website had been blocked in China, where it had been the subject of scrutiny.
According to crypto journalist Colin Wu, mobile app access is unavailable owing to backend API requests being restricted.
On the evening of July 8, Beijing time, many users found that the Binance APP appear to be blocked in China and must use a VPN to log in.
— Wu Blockchain (@WuBlockchain) July 8, 2021
It’s become almost impossible for them to go to the cryptocurrency exchange due to the country’s “great firewall,” which has now shut them out of Chinese access. Therefore, in order to access the exchange, they will have to use a VPN service.
In addition, Huobi, one of Binance’s main competitors, has been rendered inaccessible due to China’s firewall.
According to U.Today, Chinese internet providers began blacklisting major bitcoin exchanges beginning in early June.
Binance’s suspension is part of the recent wide-ranging crypto crackdown in China, which also saw the country’s entire Bitcoin mining sector be demolished only a few weeks ago.
Initially based in China, the world’s biggest exchange had to relocate to a foreign country owing to the 2017 crypto prohibition.
Binance’s Global Compliance Woes
Binance is under intense examination from several regulatory bodies around the globe. A number of UK banks had earlier this week cut off payments to the trading site.
Recently, there has been a slew of crackdowns on the site all around the globe.
Thailand’s financial authority (or securities regulator) filed a criminal complaint against the exchange for operating an unregulated digital asset business without a license, and the Financial Conduct Authority of the United Kingdom issued a similar prohibition to the exchange just a few days before.
According to the Japanese government, Binance is operating illegally in the nation. In April, Germany’s securities regulator warned that releasing securities tokens tied to stocks may result in sanctions.
Furthermore, the firm encouraged Ontario-based customers to withdraw their funds before the end of the year, as long as they first closed any open transactions.
Binance has been barred from functioning as a cryptocurrency exchange in or from the Cayman Islands, according to the Cayman Islands Monetary Authority (CIMA).
Binance, on the other hand, while emphasizing the importance of its compliance requirements in the past, insists that it has no physical presence.
So far, the summer seems to be a pivotal period for Binance’s operations. In a blog post, Binance CEO Changpeng Zhao said that the company would increase compliance efforts in order to enhance value for customers.