Binance may be tired of getting in trouble with the Chinese government. Chinese Yuan (CNY) trading on Binance’s over-the-counter (OTC) trading desk will be discontinued, according to the biggest crypto exchange in the world.
By using Binance’s OTC trading platform, often referred to as the C2C (customer-to-customer) marketplace, traders may buy and sell cryptocurrencies with practically any fiat currency by placing orders with rates and payment methods they choose.
Binance Bans Chinese Users
For compliance reasons, Binance C2C will remove the CNY trade on December 31, 2021, according to a statement released on Wednesday by Binance. Binance also said today that it plans to reevaluate its existing client base to make sure that no one is located in the People’s Republic of China.
Users in mainland China will have their accounts restricted to withdrawals exclusively, according to Binance, and they will be unable to redeem or cancel their holdings.
While Binance was founded in China, it has pulled out of the Chinese market and no longer does exchange operations there. There are a slew of regulatory agencies looking at Binance. Early in the week, a number of British banks halted payments to the trading platform
Binance’s Regulation Woes
Numerous crackdowns have been conducted on the site in recent months all around the world.
According to the Financial Conduct Authority of the United Kingdom, Thailand’s financial authority (or securities regulator) filed a criminal complaint against the exchange for running an unregulated digital asset company without a license.
The Japanese government claims that Binance is doing business unlawfully in the country. Token releases linked to stocks may result in penalties, according to Germany’s securities regulator, who issued a warning against them in April.
Additionally, the company urged residents of Ontario to take their money out before the end of the year, provided they finished any open transactions beforehand.
According to the Cayman Islands Monetary Authority, Binance cannot operate as a cryptocurrency exchange in or from the Cayman Islands. While Binance has previously emphasized the significance of its compliance procedures, it is adamant that it has no physical location.
So far, the summer seems to be a critical time period for Binance’s business activities. Binance CEO Changpeng Zhao said in a blog post that the firm will step up compliance efforts to better serve consumers.