The final clearance period is approaching, and Huobi is serious this time
Huobi's exit from the Chinese market has become a foregone conclusion.Author: Nianqing, Chain Catcher
Recently, many users have been receiving "frequent" withdrawal reminder pop-ups when logging into Huobi, which cannot be closed without reading thoroughly. Additionally, users have received messages from Huobi via email and various channels requesting them to withdraw their assets.
Some netizens have joked on social media, "Scam calls and texts seem to have become more frequent than usual, making the arrival of the withdrawal feel very real."
According to the established plan, December marks the collective withdrawal month for almost all major exchanges, which will no longer provide cryptocurrency trading functions to users in mainland China, with Huobi being the fastest to progress.
The countdown to Huobi's complete withdrawal from mainland Chinese users has entered its final phase, but some users still seem to hold onto a glimmer of hope and a mindset of waiting to see. Some users in mainland China have even chosen to purchase overseas identity verification or obtain institutional identity verification to continue accessing Huobi's cryptocurrency trading services.
In response, Huobi insiders stated that as long as the final beneficiaries are users in mainland China or reside in mainland China, they cannot apply for institutional accounts. Furthermore, Huobi has technically blocked access from mainland Chinese IPs.
This time, Huobi's determination to withdraw is firm, aiming to implement relevant policy requirements while fully moving towards internationalization, opening a new chapter in Huobi's history.
1. Huobi's withdrawal is "for real"
On December 5, according to an official announcement from Huobi Global, Huobi Global will close the deposit function for users in mainland China at 11:00 on December 14, 2021; prohibit trading functions for users in mainland China at 11:00 on December 15; and delist OTC CNY trading by 24:00 on December 31, while the withdrawal function will remain open for 1 to 2 years, with specific closure times to be notified later. Meanwhile, Huobi Global advises users to arrange their time wisely and withdraw their personal assets as soon as possible.
In addition to publishing announcements on the official website, Huobi has been notifying users of specific withdrawal details almost daily through emails, internal messages, etc., reminding users to withdraw their assets in a timely manner. Moreover, Huobi officials have also voiced in various community channels that this exit from the Chinese market is a "complete withdrawal."
Huobi's withdrawal is comprehensive and serious.
On September 24 of this year, ten departments, including the People's Bank of China, the Central Cyberspace Affairs Commission, the Supreme People's Procuratorate, the Ministry of Industry and Information Technology, the Ministry of Public Security, the State Administration for Market Regulation, the China Banking and Insurance Regulatory Commission, the China Securities Regulatory Commission, and the State Administration of Foreign Exchange, jointly issued a notice on "Further Preventing and Handling Risks of Virtual Currency Trading and Speculation." It reiterated that activities related to virtual currencies are illegal financial activities, and it also clarified that foreign virtual currency exchanges providing services to residents in China via the internet are also illegal financial activities. This is stricter than the "9.4" notice in 2017, effectively issuing a final ultimatum to all virtual currency trading platforms.
In response to national policies, that evening, Huobi Global urgently announced the suspension of new user registrations from mainland China. Two days later, Huobi announced again that it would orderly withdraw existing users with identity verification from mainland China by December 31 of this year, becoming the first mainstream exchange to clearly exit the mainland market.
On September 26, Huobi issued a notice on "Gradually and Orderly Withdrawing Existing Users from Mainland China," clearly stating that Huobi Global had stopped new user registrations from mainland China as of September 24, 2021; for existing users with identity verification from mainland China, it plans to complete the orderly withdrawal by 24:00 on December 31, 2021, ensuring the safety of user assets. By the end of October, Huobi had officially stopped all contract trading functions for users in mainland China.
Thus, Huobi has effectively "cut off its own arm," giving up its largest user market. Of course, Huobi has also completely avoided potential huge regulatory risks through this action, further enhancing its compliance and security.
Previously, Huobi's Li Lin had also clearly stated in community communications that they would "completely" exit the domestic market and mentioned that the future is still long, and the exit from the Chinese market is just a new beginning.
Next, Huobi must prioritize its globalization strategy, fully promoting market expansion in various overseas countries to maintain its industry position.
2. Market turbulence, take the withdrawal seriously
As Huobi and several other exchanges enter the core withdrawal period, a series of chain reactions are bound to occur, such as market turbulence, insufficient asset redemption capabilities of exchanges, withdrawal delays, single-coin issues, scams, and other problems may arise. Therefore, Chain Catcher once again reminds users to take the withdrawal seriously, pay attention to the timelines announced by major platforms, and handle personal assets in advance.
There are a few issues to particularly remind everyone here:
First, beware of single-coin market trends. Recently, various factors have led to a significant drop in cryptocurrency prices, but some originally low-market-cap, low-trading-volume crypto assets have shown polarization, with some small-cap altcoins exhibiting "anti-dip" trends, while others have seen even greater declines, dropping over 60%. Industry insiders believe that the reason for the volatility of small-cap altcoins is the result of the tug-of-war between bulls and bears; some low-market-cap, low-trading-volume assets, driven by funds, have the potential for low-cost control, causing previously unnoticed small coins to enter a "single-coin" market trend.
For investors, when digital assets on exchanges have low circulation, the speculative trading strictly speaking belongs to futures, and buying and selling are merely a string of numbers. Therefore, amidst increasing volatility in the cryptocurrency market, investors should also be cautious of "single-coin" trends. During this turbulent withdrawal period, single coins should still be sold or transferred as necessary.
Second, pay attention to withdrawal delay issues. Huobi has set a withdrawal function retention period, which will continue for 1 to 2 years; after the withdrawal, users in mainland China who have opened Huobi Global accounts can still log into their accounts, but can only view personal information to apply for asset withdrawals and cannot engage in any trading. However, considering that some cryptocurrencies may face liquidity issues before the expiration date, leading to crashes or even inability to trade, it is recommended that users trade and withdraw as soon as possible. Huobi officials have also reminded users to withdraw or handle assets 15 days in advance to avoid various unexpected situations that may arise close to the deadline, leading to asset losses.
Third, the issue of scams. Recently, as the withdrawal approaches, many criminals have been using the excuse of Huobi and other platforms' withdrawals to commit fraud. Criminals may impersonate Huobi officials, sending users messages requesting them to transfer assets to a "safe address." Once users click on the scam link, they will enter a fake Huobi website; if users input their account, password, and verification code, the criminals can directly log into the account and quickly transfer the user's account assets. Huobi officials have clearly informed users that they will not remind users via phone calls or text messages with links; specific notifications should be based on the official website.
During this sensitive period, how to safely withdraw assets is a particularly important issue for all users. Taking Huobi as an example, users can log into the Huobi Global official website ++https://www.huobi.com/zh-cn/++ (alternative domain: ++https://m.huobi.mk/zh-cn/++) or log into the 【Huobi Pro】 App, and carefully follow the steps prompted by the official.
