What happened to Bitcoin and Ethereum three days after China declared the transactions illegal

Huobi, one of the world’s largest cryptocurrency exchanges, said it had stopped processing new account openings for users in mainland China after Beijing tightened measures on the crypto industry, CNBC reports.

On Friday, the People’s Bank of China declared all digital currency transactions illegal. At the same time, the Chinese central bank has turned its attention to foreign exchanges that provide services to users in mainland China.

Huobi, one of these exchanges, recently announced that it will ignore new registrations for users in mainland China. In addition, the company will gradually withdraw the accounts of current customers by the end of the year. Meanwhile, Binance, a major cryptocurrency exchange, has blocked account records using Chinese phone numbers. Also, the Binance application can no longer be downloaded in the world’s second largest economy.

The restrictions arose amid fears by the Beijing authorities about the impact of virtual currencies on the country’s financial stability and the achievement of its carbon targets, noting Bitcoin mining processes.

In 2017, China closed local cryptocurrency exchanges and banned so-called ICOs, the process by which a blockchain-based project is funded following the launch of a digital currency. As a result, several crypto-exposed exchanges have moved their headquarters abroad, creating a series of subterfuges that have allowed mainland Chinese traders to buy and sell virtual currencies through those offshore platforms.

Currently, major cryptocurrencies have managed to overcome the shock caused by Beijing’s decision last week, reaching levels before the new measures were announced.

Bitcoin has risen more than 6% in the last 24 hours and is approaching $ 44,000, and Ethereum has risen 11.7% to $ 3,093. XRP and Cardano appreciated by 6% and 2.7%, respectively.

However, the actions associated with the crypto market have not proved as resilient. Houbi fell nearly 20 percent on the Hong Kong stock exchange, while software firm Meitu and data provider MicroStrategy declined 6.7 percent and 2.8 percent, respectively, according to Bloomberg.

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