China Crypto Roundup (Nov 16- Nov 23): OKEx to Resume Withdrawal, Crypto Miners in China Get Their Cards Frozen by the Chinese Government, Huobi to Take over Top South Korea Crypto Exchange Bithumb
The top stories from the Chinese cryptocurrency sphere this past week include: OKEx to resume withdrawals after the temporary suspension, Several Chinese miners bank accounts frozen allegedly for fraud and money laundering, Huobi prime bidder to purchase top South Korean Bitcoin exchange Bithumb.……
OKEx to resume withdrawals after the temporary suspension
Good news for all OKEx users as the crypto exchange seems to have been granted temporary reprieve from the legal developments that have played out over the last two weeks.
The individual, founder Star Xu, was known to have been cooperating with a police investigation since mid-October. According to OKEx he has now “completed assisting the authorities” and is back at OKEx, meaning that the exchange will be able to become fully operational again.
News broke out that OKEx founder Mingxing “Star” Xu, who was arrested after the exchange suspended its withdrawals, will soon regain his freedom. Following that revelation, the exchange’s native token OKB surged by about 10%.
Besides, the exchange has also promised to launch “significant user loyalty reward campaigns” in the near future in order to “express our deep apologies and most sincere gratitude to our community”.
Several Chinese miners bank accounts frozen allegedly for fraud and money laundering
Numerous cryptocurrency miners across China have had their cards frozen over the past week. With access to their bank accounts and their funds revoked, the miners are already experiencing a slew of problems many think have the potential to bring the industry to its knees.
According to the Chinese local media, the crackdown is allegedly part of a campaign to combat telecom fraud and other types of money laundering. Rightfully afraid of legal ramifications that might come with crypto ownership, many investors in China have cut back on fiat withdrawals and will most likely be keeping their funds in cryptocurrencies for the foreseeable future.
Bitcoin’s hash rate at the time of this report is 130.55 million and it’s currently climbing back up, that could change real quick, caution is advised. Thus far the news hasn’t affected Bitcoin or the crypto markets, as they remain unphased by the news. However, this author hasn’t seen the news reported elsewhere yet.
Huobi is planning to acquire Bithumb, the top South Korean crypto exchange
A report from South Korean news outlet The Bell reveals that Huobi is the prime bidder among companies trying to acquire Bithumb, the largest South Korean crypto exchange.
By acquiring Bithumb, Huobi will shorten its journey to having a crypto exchange in Korea and bypass the new financial law, the Enforcement Decree of the Special Money Act, which requires all crypto exchanges to have a “real name confirmation account.”
The law states that local banks only deal with crypto exchanges with internationally-accepted know-your-customer (KYC) requirements. So far, the regulators have only offered four exchanges this special license, including Upbit, Coinone, Kobit, and Bithumb.
Despite the high sentiment of the public to speculate in cryptocurrency, South Korea’s economy volume is relatively small. South Korea also faces severe regulatory policies, it is also doubtful whether local regulators will approve a Chinese exchange’s attempt to acquire South Korea’s largest local cryptocurrency exchange.