Major cryptocurrency exchange Huobi closed mainland China futures and other derivative contracts on Friday as planned.
Earlier this month, the cryptocurrency exchange announced on its website that it will settle all futures and other derivatives for all Chinese consumers on Friday as part of a larger plan to end operations in the country.
Huobi was the first stock exchange to announce its withdrawal from mainland China due to the continued refusal of the Chinese government to lift the Bitcoin (BTC) ban. On September 24, China’s largest cryptocurrency exchange held a shareholders’ meeting at which the company’s shareholders unanimously decided to leave China and go out of business.
According to Cointelegraph, Huobi Group founder Du Jun has pledged to secure all cryptocurrencies for Chinese accounts before they are finally closed by December 31st.
Following Huobi’s leadership, platforms and other cryptocurrency-related companies such as mining pools and mining hardware manufacturers have adopted the same strategy. This list includes Binance, BTC.com, Bitmain and others. Cryptocurrency exchange CoinEx announced its exit from China, and Renrenbit, created by Chinese OTC king Zhao Dong, also closed its business.
The massive exodus is the result of government efforts that began in late September, when 10 Chinese authorities, including the Ministry of Public Security and the Supreme Court, as well as the country’s central bank, announced a general ban on cryptocurrency trading.
Speaking at the Code Conference in Los Angeles in late September, Tesla CEO Elon Musk said he believed cryptocurrency was undermining the power of the Chinese Communist Party. As a result, the government-imposed ban on cryptocurrency will continue.